...Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and wholesale markets will be the main target.Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail...
Words: 1857 - Pages: 8
...Executive Summary The thesis investigates the performance of problems and opportunities of Direct Foreign Investment in Bangladesh. It also identifies the overall direct foreign investment system in Bangladesh. Problems and opportunities of direct investment in Bangladesh follow the rules and regulation prescribed by the investment forum for schedule countries on companies. The functions of the country or company cover a wide range of investment and functional activities to individual, firms, corporate bodies and other multinational agencies. It is very important to the national economy as a whole because the expansion and condition of the company or firm affect the level of business activity through their effect on the nation’s money supply. The direct foreign investment extended its credit facilities to different sectors to diversify its credit portfolio in compliance with credit policies of direct investment of the foreign country such as Industrial, Housing, Contract work, Working capital for trades, manufacturing processing plants and export oriented industries and other business. Introduction This Century is” Century of Globalization of trade and economy”. The world is facing competition in marketing of the products in global market. In this circumstance the companies goes to investment, those has available capital to invest out side the country where they can get competitive advantages in terms of cost, Expansion of market, Raw materials. The countries have available work...
Words: 5137 - Pages: 21
...particular time period. Transactions that reflect inflows of funds generate positive numbers for the country’s balance, while transactions that reflect outflows of funds generate negative numbers for the country. Current Account: The current account is one of the two primary components of the balance of payments, the other being capital account. It is the sum of the balance of trade (net revenue on exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers. Calculating Current Account: (Export – Import) + Net Income (abroad) + Net Current Transfer Current Account Overview of Bangladesh: From the chart below we can observe the last five year current account condition year 2007 – 2011, the chart states that Bangladesh had a surplus condition all...
Words: 2294 - Pages: 10
... UNITED INTERNATIONAL UNIVERSITY DATE OF SUBMISSION: 31st DECEMBER, 2011 CORPORATE TAXATION IN BANGLADESH FISCAL ENVIRONMENT OF STOCK MARKET IN BANGLADESH FISCAL ENVIRONMENT OF STOCK MARKET IN BANGLADESH The share market in a country is the engine of raising capital, which accelerates industrialization and the process of privatization. Share market means the share and stock markets of the country. It is a market for long term fund. With the emergence of the need for infrastructural development projects, for setting up of new industries for entrepreneurial attempts-now there are more frequent needs of funds. Participants in the share market are many. They include the commercial banks, saving and loan associations, credit unions, mutual saving banks, finance houses, finance companies, merchant bankers, discount houses, venture capital companies, leasing companies, investment banks & companies, investment clubs, pension funds, stock exchanges, security companies, underwriters, portfolio-managers, and insurance companies. The main market participants are: ▪ Investors ▪ Brokers ▪ Dealers ▪ Underwriter ▪ Investment Banks ▪ Merchant Banks Structure of the Share Market in Bangladesh Bangladesh capital market is one of the smallest in Asia but within the south Asian region. It is the third largest one. It has two full full-fledged...
Words: 5585 - Pages: 23
...Promote new business, government offer various means of incentives for tax consideration. Some of the most used incentives offered to new business in Bangladesh are as follow: i. Tax Holiday ii. Accelerated Depreciation iii. Tax Subsidy In this paper we will be mainly focusing on Tax Holiday & Accelerated Depreciation and which one is better for a newly established manufacturing concern in Bangladesh. What is Tax Holiday? A government incentive program that offers a tax reduction or elimination to businesses. Tax holidays are often used to reduce sales taxes by local governments, but they are also commonly used by governments in developing countries to help stimulate foreign investment. Used in the hopes of increasing the gross domestic product (GDP) in developing countries, tax holidays are a way in which governments attract foreign investors. Tax holidays are often put in place in particular industries to help promote growth. What is Accelerated Depreciation? Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. The straight-line depreciation method spreads the cost evenly over the life of an asset. On the other hand, a method of accelerated depreciation like the double declining balance (DDB) allows you to deduct far more in the first years after purchase. From Income Tax Ordinance 1984: Tax Holdiay (Chapter V: Section 45, 46A, 46B) Section 45: (1) Subject...
Words: 5707 - Pages: 23
...enjoyed the study of tax system of Bangladesh in various aspect of tax. First of all, we are indebted to our guide teacher Ms.Rehana Frowzier Lecturer, Department of Business Administration, Stamford University Bangladesh. His views, suggestions save us from more difficulties. We are also grateful to our group members’ most valuable cooperation, inspiration and suggestions. EXECUTIVE SUMMARY This dissertation report highlights on our practical experience in different types and categories ‘Tax System’ especially Tax System Of Bangladesh. During our short working period, we tried to gather information from News Paper, web sites. But the NBR does not provide information in the web site directly and even it does not publish tax structure implement in Bangladesh. So, we take much information about tax in our personal concept and view of Tax System of Bangladesh. To complete this report, we have gained practical knowledge about various type of Tax System. For example, Tax System Of Bangladesh, canon of taxation and implementation the canon of Bangladesh in Tax System Of Bangladesh. In this way, we are getting knowledge not only the tax system but also the implementation of canon on tax system of Bangladesh. As, tax is an important part of our country development. so, day by day, people are getting more conscious and informed about tax. Object of this study We can gain knowledge about the tax system of Bangladesh by studying this topic. As following aspects of tax we can learn from...
Words: 3647 - Pages: 15
...* Budget making process. Midterm budget framework. Budget Defined * A budget (from old French bougette, purse) is a financial plan and a list of all planned expenses and revenues. * A government budget is a legal document that is often passed by the legislature, and approved by the chief executive-or president. * The two basic elements: Revenues and Expenses. * Revenues are derived primarily from taxes and non-tax revenue. * Government expenses include spending on current goods and services, which economists call government consumption ; government investment expenditures such as infrastructure investment or research expenditure; and transfer payments like unemployment or retirement benefits, Social Safety nets Basis of Budget * Budgets have an economic, political and technical basis. * Unlike a pure economic budget, they are not entirely designed to allocate scarce resources for the best economic use. * They also have a political basis wherein different interests push and pull in an attempt to obtain benefits and avoid burdens. * The technical element is the forecast of the likely levels of revenues and expenses Budget Cycle * Budget Preparation: The first phase of the budget cycle involves preparation by the departments/agencies, ministries and finally ministry of Finance * Legislative Approval: Typically, the legislature has the power to approve or reject a proposed budget. They review it and vote. If approved, it moves...
Words: 6348 - Pages: 26
...industries to compete in global market. The supporters of trade protectionism believe that it allows domestic producers to survive and grow, producing more jobs. Because if the domestic product industries develop well and have the ability to compete in the global market, later on there will be more jobs and people will be employed and also be skilled. In the 17th and 19th century, business people used to follow an economic principle called mercantilism. The main theorem of mercantilism is to sell or to export goods and services to the other nations than bought or imported from it. In this method, the export should be in a higher rate than the import rate. To make this idea a success, governments started charging a tariff, which is a tax on imports, to make imported goods more expensive. In this process, the government makes the imported product expensive so...
Words: 1942 - Pages: 8
...include factors such as: clients and suppliers; its competition and owners; improvements in technology; laws and government activities; and market, social and economic trends. Overview of business environment in Bangladesh: Political Environment: This refers what is happening politically in the environment in which government runs the country including areas such as tax policy, employment laws, attitude of government officials, types of government in power, environmental regulations, trade restrictions and reform, tariffs and political stability. Marketing decision is strongly affected by developments in political environment. This environment is composed of laws, government agencies, and pressure groups that influence and limit various organization and industries. Sometimes these laws create new opportunities for businesses. For example, mandatory recycling laws have given the recycling industry a major boost and spurred the creation of dozens of new companies making new products from recycled materials. In Bangladesh, overall political environment is not good. Because there political government is not stable, frequently change the government. Strike, corruption is common affair in Bangladesh. Only one thing is favourable for business that is tax policy. In Bangladesh tax rate is very low. Economic Environment: This refers what is happening within the economy, for example; economic growth/ decline, interest rates, demand, exchange rates and inflation rate, wage rates, minimum...
Words: 1270 - Pages: 6
...economy Bangladesh has somewhat stopped the bad effect of recession. Since Bangladesh is a developing country it is not safe from any global effect. Bangladesh’s economy is in a vulnerable position. Globalization has liberated the business among the countries of the world. Now open market method or free trade has increases the competition between countries of the world. Bangladesh’s economy is not in such condition though it has made progress. Bangladesh’s political instability and deficiency in international matters are some impediment of its growing economy. Still we are dependent on import which is also a cause of vulnerability. Our trade system and keeping away from the global matters also are hampering the growth. As a developing country our economy is not an established economy. So our financial budget of every year is a deficit budget. We have to much depend on foreign help. Being industrially backward our export products are declining which causes a negative impact on the balance of trade. We have to concern in utilizing the resources. Development programs are always going on which need machinery that we have to buy from other countries. So there is a great need of taking care in those sectors to implement any new methods or competing with other countries. The Condition of Economy of Bangladesh The economy of Bangladesh is a developing market-based economy. Its per capita income in recent year is US$750. According to the International Monetary Fund, Bangladesh ranked...
Words: 1976 - Pages: 8
...Answer: Foreign Direct Investment (FDI) has been an important part of the economic transition, business liberalization and macro-economic growth story in Bangladesh over the last decade. Since the last decade, there has been a considerable change in global flows of trade and finance including a surge in FDI. Despite being a recent phenomenon, several underlying factors have contributed to increasing the FDI inflow in Bangladesh, such as trade and exchange liberalization, current account convertibility, emphasis on private sector led development, liberalization of the investment regime, opening up of infrastructure and services to the private sector-both domestic and foreign, and above all the interest of foreign investors in energy and telecommunication sector. It is argued that more open trade policies are associated with the presence of foreign firms and economy-wide technological and productivity gains in developing countries like Bangladesh. There also exists evidence of a strong positive correlation between increasing share of FDI in GDP and diversification to high-technology exports in countries that have open trade regimes. Foreign Direct Investment (FDI) has played a key role in the modernization of the Bangladesh economy for the last 15 years. Bangladesh received FDI of $1.13 billion last year compared to $910 million in 2010. This increase of about 25% is higher than the average 23% worldwide growth of FDI. According to the 2012 World Investment Report (WIR)...
Words: 2853 - Pages: 12
...Doing Business Bangladesh Prepared by Lex Mundi member firm, Amir & Amir Law Associates This guide is part of the Lex Mundi Guides to Doing Business series which provides general information about legal and business infrastructures in jurisdictions around the world. View the complete series at: www.lexmundi.com/GuidestoDoingBusiness. Lex Mundi is the world’s leading network of independent law firms with in-depth experience in 100+ countries. Through close collaboration, our member firms are able to offer their clients preferred access to more than 21,000 lawyers worldwide – a global resource of unmatched breadth and depth. Lex Mundi – the law firms that know your markets. www.lexmundi.com A Guide to Doing Business in Bangladesh Prepared by: Amir & Amir Law Associates Email: info@aalabd.com Web: www.aalabd.com Updated 29th December 2011 Limitations of Scope: This guide contains a general introduction to the subject. The information in this guide is meant for the purposes of reference and should not be used as legal advice. Source of Information: The information provided in this guide has been obtained from various sources, namely the Bangladesh Board of Investment (BOI) and the Bangladesh Bank. 1 A GUIDE TO DOING BUSINESS IN BANGLADESH CONTENTS I. BANGLADESH AT A GLANCE I.A. Key Facts I.B. Infrastructure I.B.1. Telecommunications I.B.2. Transport I.B.2.a) Land I.B.2.b) Water II. INVESTMENT OPPORTUNITIES IN BANGLADESH II.A. Bangladesh Investment Climate...
Words: 10198 - Pages: 41
...Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and wholesale markets will be the main target. Introduction: Introduction to Company: The global apparel market presently is a consumer-driven industry. Also,globalization and new technologies have allowed consumers to have more access tofashion and different varieties. As a result, consumers are changing, competition isfierce, and companies are evolving to meet these demands. Zara is the flagship chain store of Inditex Group owned by Spanish company tycoon Amancio Ortega, who also owns brands such as Massimo Dutti, Pull and Bear, Oysho, Uterqüe, Stradivarius and Bershka. The group is headquartered in A Coruña, Galicia, Spain, where the first Zara store opened in 1975. It is claimed that Zara needs just two weeks to develop a new product and get it to stores...
Words: 3473 - Pages: 14
...Journal of Bangladesh Institute of Planners Vol. 2, December 2009, pp. 126-135, © Bangladesh Institute of Planners ISSN 2075-9363 Problems and Prospects of Municipal Holding Taxation System: A Study on Bhairab Pourashava Md. Samiul Huda* Muhammad Rashidul Hasan** Abstract Local governments in Bangladesh have several options at hand to finance their activities and pursue their fiscal policy. These options include the imposition of taxes and the generation of non-tax revenues through fees, levies, cost recovery and user charges, property and investment income, domestic and foreign borrowing, the sale of assets and domestic and foreign grants. Urban Local Governments (ULGs) in developing countries are in dire need of resources not only for investment to meet the increasing demand of growing urban population but also for maintenance of the existing services. But the resources of the municipal bodies are inadequate; infrastructures are in poor condition and services maintenance is neither enough nor would cover the new expansions. Inefficient governance of the municipal bodies is partly responsible for this. Holding tax plays an important role in own revenue of Pourashavas. About 35-45% revenue comes from holding tax. But in Bhairab Pourashava it contributes only 18-20%. Every year, its demands and collection are decreasing. Many factors are responsible for this. This study tries to find out the problems of holding tax collection and assessment. Pourashava requires to pay more...
Words: 4087 - Pages: 17
...business in Bangladesh over years and what will be the course of actions in order to achieve the proper “Investment climate in Bangladesh”. The report is prepared in order to get the knowledge and fulfill the basic requirement to complete the course titled as “Economic Conditions Analysis”. b. Background of the study: Economics is a sea of theories. These theories are the stairway to lift us to a stage from where we can get the entire idea of its different sectors. “Economic Conditions Analysis” is basically theory related course in addition to a mixing of practical incidents to compare theories and its applications. Obtaining theoretical knowledge is only a halfway to reach the target because implementation of theories is the ultimate goal of it. Being a very practical course “Economic Conditions Analysis” requires a large extent of implementation of its theories and procedures in the real life. To meet up this requirement I have prepared the report titled “Investment climate in Bangladesh”. c. Objectives: 1. Broad Objective: The broad objective is to examine investment climate in Bangladesh over years and what should be done for better performance in the upcoming years. 2. Specific Objectives: The specific objectives of preparing the report are as follows: i. To present historical data regarding industrial policy, obstacles to implement and what should be done to create proper investment climate in Bangladesh. ii....
Words: 4767 - Pages: 20
