Mega Projects in Sylhet | Ongoing Development

Development work is going on all over the Sylhet division. Efforts are being made to change Sylhet by implementing some mega projects. Several projects are implementing with the efforts of the local people's representatives to build a better enlightened Sylhet. Some projects have already been completed. Some are under implementation and some are waiting to start. The peoples think that the whole Sylhet division will change if the ongoing and pending projects are implemented.

 

Mega projects in Sylhet:

Mega projects undertaken for the development of Sylhet region include Sylhet Medical University, Sylhet Cricket Stadium-2 (Divisional Outer Stadium), Expansion and Modernization of Osmani International Airport, Bangabandhu Sheikh Mujib Hitech Park, Sylhet-Dhaka Six Lane Highway, Sylhet-Tamabil Four Lane Highway, Sylhet Marine Academy, Sheikh Russell Textile Engineering College, Sylhet Textile Institute, Digital City Project, Excavation and Bank Conservation of 114 Rivers, Bangabandhu Multipurpose Complex, New BSIC Industrial City, Road and Drain Expansion, Beautification and Modernization projects.

Initiatives were taken to set up new medical universities to enhance the quality of higher education, research and services and to expand and develop existing facilities. Sylhet Medical University was established for this purpose. It is the fourth government medical university in the country. The process of acquiring 83 acres of land in South Surma for a permanent campus has started. Another mega project in the field of education 'Sylhet Marine Academy' has already been implemented. The academy has been set up on a 10-acre land on the banks of the Chenger canal in Badaghat area of ​​Hatkhola union in Sylhet Sadar upazila at a cost of Taka 107 crore. On May 6, 2021, Prime Minister Sheikh Hasina inaugurated the academy.

Besides, Sheikh Russell Textile Engineering College and Sylhet Textile Institute are being constructed on 10 acres of land in Tayab Sultan Mouza of Kuchai Union in South Surma for the development of technical education in Sylhet at the initiative of the Ministry of Textiles and Jute. On 1st November, 2018, Prime Minister Sheikh Hasina laid the foundation stone of these projects. The cost of the two projects has been estimated at around Tk 210 crore. Of these, Sheikh Russell Textile Engineering College is being built on 5 acres of land at a cost of Tk 110.36 crore and Sylhet Textile Institute is being built on 5 acres of land at a cost of Tk 95.65 crore.

The communication system is going to be the most developed during the tenure of the present government. Development projects have been taken in parallel by road, air, rail and waterways. The Sylhet-Dhaka six lane highway project is finally going to start after overcoming many complications. The Asian Development Bank (ADB) has already approved a loan of over Tk 15,000 crore for the project. The total cost of the project has been estimated at more than Tk 17,000 crore. The project was approved by the ECNEC in February this year. If the highway is upgraded to six lanes, the economy here will change. Industry and tourism will get new momentum.

The Dhaka - Sylhet six lane highway is expected to open new horizons of trade potential with the northeastern states of India. In addition to this highway, the four lane upgrade project of Sylhet - Tamabil highway has already been approved by ECNEC. It will be financed by the Asia Infrastructure Investment Bank (AIIB). Out of the proposed cost of Tk 3,586 crore, Tk 615.48 crore will be spent from the government's own funds and Tk 2,970.55 crore from AIIB loans. If this highway is upgraded to four lanes, import and export with India through Tamabil land port will increase. At the same time, the tourism sector in Sylhet will also see a huge improvement.

Initiatives have been taken to convert the meter-gauge railway in Sylhet-Akhaura section to dual-gauge with the long efforts of Foreign Minister AK Abdul Momen in railway development. If the project is implemented, the rail communication system with Sylhet-Dhaka and Sylhet-Chittagong will be greatly improved. Travel time will also decrease. Mega projects have been taken up for the development of roads and railways as well as waterways. The foreign minister had sent a proposal to the shipping minister to dig 114 numbers of small and big rivers in Sylhet division to increase the use of waterways and control floods. The Ministry of Shipping has taken initiative to rescue, excavate and conserve the river.

Mega project has been taken to upgrade Sylhet Osmani International Airport to a full-fledged international airport. Two projects have been taken for the development of the airport at a cost of Tk 2,568 crore. Of this, the runway is being upgraded at a cost of Tk 452 crore. The work of this project is almost at the last stage. Besides, a full-fledged international terminal with modern facilities is being constructed at a cost of BDT 2,116 crore. New cargo houses have been constructed and scanners have been installed at the airport. The project includes modern ATC towers, taxiways and aprons, modern fire stations, new boarding bridges, baggage handling systems, flight information display systems and other state-of-the-art terminal building related equipment. If the Tk 2,500 crore project is implemented, Osmani Airport will be used as a hub for air communication.

Several big projects have also been taken up in Sylhet to increase industrialization and employment. Among them, 'Bangabandhu Sheikh Mujib Hi-Tech Park' is being implemented in the colorful area of ​​Companiganj in Sylhet. The construction of ICT Park is progressing fast. Meanwhile, the work of filling up the project, flood control dam, visual bridge, installation of internal roads and lights, construction of electrical substation, project site office, administrative building, ICT Business Center, Sheikh Kamal IT Training Institute is nearing completion. Though construction of 'Bangabandhu Sheikh Mujib Hi-Tech Park' has started on 175 acres of land, a proposal has already been sent to the ministry to acquire more 85 acres of land as the demand of entrepreneurs and investors is increasing day by day.

Bangladesh Small and Cottage Industries Corporation (BSIC) have taken initiative to set up another new industrial city in Sylhet for the development of small scale industries. It will be the third industrial park in Sylhet. A project has been taken to set up this industrial park on 500 acres of land. BSCIC Sylhet Office said priority would be given to agro-machinery, chemicals, food processing, pharmaceuticals, jute and jute products, leather processing products, handicrafts, plastics and women entrepreneurs in the eco-friendly industrial park. Priority will also be given to light engineering institutes.

Another new government hospital is being built in Sylhet to develop the health sector. Construction of a new 250-bed Sylhet District Hospital at Chauhatta in the metropolis is in full swing. During the tenure of the present government, huge development has been achieved in the stadium of Sylhet. Another new stadium has been built next to the Sylhet International Cricket Stadium at a cost of around BDT 25 crore. Known as Sylhet International Cricket Stadium Ground-2, the stadium was officially inaugurated about six months ago. The ICC had been asked to approve the recognition as an international venue. Built on about 3 acres of land, the stadium has been turned into a full-fledged sports complex.

The economy of Sylhet is the fourth largest in the Peoples Republic of Bangladesh. In recent years, Sylhet is experiencing major infrastructural developments, and projected to be the forefront of Bangladesh's economic growth.

 

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Real Estate Companies in Bangladesh are Rising

During the COVID-19 Corona virus period, buyers in the housing and real estate industry of Bangladesh are increasing. Entrepreneurs in the sector saying that the demand for buyers has increased so much in recent times that top class Real Estate companies in Bangladesh do not have unsold flats. Companies that had stopped building construction work for so long have now come forward and resumed their construction.

Demand from buyers is on the rise as the government provides undisclosed investment facilities in the housing sector. Currently, the highest demand for Apartment / Flats in Bangladesh is among government employees. Some investors demand land and plots. In such a situation, the concerned companies have demanded to reduce the interest and registration cost of loans in the housing sector to 7 percent. The real estate sector in Bangladesh is now a lucrative investment destination for buyers and investors. The registration cost of buying flats and plots is now 10 percent and it comes with single digit or one digit interest loan.

In this regard, Real Estate and Housing Association of Bangladesh-REHAB President Alamgir Shamsul Alamin Kajal said that the real estate companies in Bangladesh are now getting good response from buyers. The situation is such that even good companies are not able to sell flats to the buyers. Buyers are growing every day in recent times. Interest in buying flats and plots is increasing among them. As a result, many companies are taking up new projects to build flats inside Dhaka, Chattogram and other cities across the country.

The undisclosed income is also being invested in the housing sector. Owners of companies are demands the interest rate on bank loans and registration cost of flats and plots should be reduced to 7 percent. Some banks are now keen to lend. Some banks are giving loans at 7 percent interest rate. The recovery in the housing sector is also boosting the overall economy.

Business in the housing industry is coming back. Buyers respond more than ever. This is due to two reasons- one is that money laundering has decreased during the Corona period. Another is the government's undisclosed investments facilities for two consecutive financial years. All in all, the real estate company in Bangladesh is now in a good position.

JCX Developments Limited is a state-of-the-art flat builder in the country's elite Bashundhara residential area inside Dhaka city. Iqbal Hossain Chowdhury, the managing director of the company and director of FBCCI, a top organization of businessmen, told that there has been a lot of demand from buyers for good quality flats in recent times. This demand has been created mainly due to undisclosed money investment facilities. As a result, there is a huge interest of buyers for flats in Bashundhara R/A.

Investors have lots of interest for both ready and used flats in Dhaka city. Some searching keyword in Google are: Used flat sale in dhaka, Low price flat in dhaka, Flat sale in dhanmondi, Studio apartment in dhaka, Used flat sale in mirpur, Ready flat for sale in mohammadpur dhaka, Ready flat sale in dhaka, Flat for sale in dhaka uttara, Flat sale in banasree, Dhaka housing adabor etc.

In the national budget for the fiscal year 2020-2021, the legal directive to allow higher revenue and economic activity in the private sector said that no matter what is in the country's customary law, no one can raise any question about the investment of undisclosed money. To take such an opportunity, taxpayers have to invest undisclosed money in land, flats, buildings and apartments, banks, savings certificates, stock exchanges, bonds or any other such securities. To avail this facility, income tax at the rate of 10 percent has to be paid. Investing in undisclosed funds will reduce money laundering and tax evasion. The move is expected to boost mainstream economy, employment and revenue growth. This facility will be continued in the new fiscal year 2021-22 as well as provision has been made to impose penalty at the rate of 5 per cent on other undisclosed funds. 

According to the concerned, the annual market of the real estate companies in Bangladesh / housing sector in the country is now around Tk 60,000 crore. The annual growth in this sector is 15-17 percent. The annual demand is 1 lac 20 thousand flats. Overseas income / Remittance and undisclosed money owners buy more real estate properties. Expatriate income of Bangladesh did not decrease during COVID-19 period. Besides, there is an opportunity to invest undisclosed money by buying land or flats. As a result, trade in this sector has increased a lot. The catastrophic disaster that hit 458 sub-sectors of the housing industry in Corona is now a beacon of hope. Around BDT 2 lac Crore have invested in more than 2,000 industries in this period.

 

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Japan will build Smart City in Bangladesh

Smart cities, are the result of the growing importance of orienting our life toward sustainability. There are different parameters by which a city ranks more highly than another. To achieve this 10 key dimensions are considered: Governance, urban planning, public management, technology, environment, international projection, social cohesion, mobility and transportation, human capital and economy.

The development of 'smart cities' has been a top priority for many countries and Bangladesh may soon join their ranks. In a bilateral meeting with Bangladesh's ICT Minister Junaid Ahmed Palak and the Japanese Ambassador Naoki expressed Japan's interest in building a smart city in Bangladesh. Last year Japan has set aside a 250 billion yen (US$ 2.4 billion) fund to support Smart City projects by Japanese companies and improve decarbonization measures in 26 cities across ASEAN.

According to Mr. Naoki, Japan has contributed in many sectors, including infrastructural development of Bangladesh. There are currently more than 300 Japanese companies operating in Bangladesh - three times as much as in the last 10 years.

Japan is the largest Asian export market for Bangladesh, amounting to USD 1.3 billion. Despite the many challenges posed by the Covid-19 epidemic, Japanese companies are ready to expand their business in Bangladesh.

Naoki called for the development of strategic relations to further enhance cooperation between the two countries. He said that ICT sector is now the main driving force of the economy of Bangladesh. The Japan International Cooperative Agency (JICA) can further enrich Bangladesh's plan to become a developed economy by the year 2041 by assisting in the development of technology-dependent human resources.

Naoki emphasized the importance of collaboration to further expand cooperation between the two countries through the development of strategic partnerships between Japan and Bangladesh.

To further strengthen Bangladesh's ICT sector, ICT Minister Junaid Ahmed Palak made a number of proposals to the Ambassador, including on cyber security, e-waste management and e-governance. Palak said, "We have already sent a proposal to ERD to set up a Bangladesh-Japan ICT University,".

Japan has allocated 2.4 billion to support Japanese companies in the Smart City project and the development of carbon-free systems in 28 ASEAN cities. Tokyo expects all 26 cities to present their smart city projects by the end of this year, and eligible projects will be selected by March.

Japan expected these 26 cities across ASEAN to present their Smart City development plans at the end of last year, with eligible projects to be picked by March this year. It also expects Japanese companies to have basic plans for these cities with feasibility studies conducted. However, at the time of writing, its progress is still unclear

 

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Used Flat for Sale in Dhaka | Secondary Property Market in Dhaka

Real Estate Companies in Bangladesh are Rising

Used Flat for Sale in Dhaka | Secondary Property Market in Dhaka

Recently one of my friends bought a used 1,600 sqft flat in Sector 10 of the Uttara in Dhaka city at BDT 85 lacs. If he wanted to buy a new flat, he would have to shell out at least Tk 1.20 crore, an amount that would have been tough for him to manage. But my friend is very happy now he said, “The used flat he bought is almost new, and without any hassle, the owner has handed over the possession of the property”. People are searching for used flat for sale in Dhaka.

The market size of the secondary Apartment / Flat segment in Dhaka city has no reliable data. Flat / Apartment buyers in the city are now showing an increasing interest for used flat in Dhaka as the properties are cheaper and spacious and come with utility services, especially gas connection, according to realtors and home loan providers. The demand for used flat for sale in Dhaka is around 20 per cent of the total demand for the properties in the city.

The demand for the secondary flat is growing day by day. There can be two reasons: they can be bought at lower prices, and they are roomy. Data on property demand in the last 14 months showed the requests for secondary properties in Dhaka averaged 76 per cent of all queries. The owners cannot use around 400sft of a 2,000 sft flat although they have to pay the price. But, the owners of used flats can use the entire available floor space and rooms were spacious.

For most of the cases about used flat for sale in dhaka, buyers have to renovate the flat. In some cases, they get a flat in excellent condition. This high demand for secondary properties is reflected everywhere. The ready flat market segment or the secondary property market has always been at the forefront of Bangladesh's real estate industry.

The highest percentage of query for used flat for sale in Dhaka, low price flat in dhaka was and such queries experienced in August last year when it accounted for a staggering 86 per cent. Even during the peak of the pandemic in April and May in 2020, when the entire real estate sector experienced a slowdown, about 65 per cent of all property demand in Dhaka was for ready flats.

People on the internet / Google are searching for secondary market properties for used flat sale in Mirpur, Uttara, Dhanmondi, Kalabagan, Rampura, Banasree, Moghbazar, Aftab nagar, Gulshan, Segunbagicha, Banani, Khilgaon, Mohammadpur, Shyamoli, Bashundhara residential area in Dhaka city. The searching queries show that the demand for secondary properties is solid.

Some popular area such as Mirpur, Uttara and Mohammadpur have plenty of ready flats available, even though there hasn't been an adequate supply of secondary properties / used flat for sale in Dhaka. One of the major reasons people search for homes in Mirpur, Badda or Dakshln Khan is affordability. Some parts of Uttara can be great locations to find affordable secondary properties.

 

Used flat sale in Mirpur:

Based on the present market report and data, in last 4 to six months the average price of ready flats in Mirpur was around Tk 4900-5000 per sft, with certain places such as Pirerbag and Section 11 offering flats at Tk 3,100+ per sft.

 

Used flat sale in Uttara:

The average price of ready flats in Uttara was BDT 6,500+ per sft, though the inner sectors are more affordable.

 

Used flat sale in Dhanmondi:

Dhanmondi area is more complex in terms of the price of ready flats. The average price of recently added properties can be more than Tk 10,000 per sft. Properties in West Dhanmondi and Shankar are sold at Tk 6,500+ per square feet.

 

People like to purchase suitable secondary flats due to availability of gas connection, while there is no guarantee that new flats will have the connection. Real estate experts said that secondary flats were comparatively cheaper than the new ones, so the middle-income groups that couldn't spend a big amount purchased used properties. The non-bank financial institution provides home loans against secondary flat. The number of loan files for secondary flats is increasing gradually.

The REHAB had urged the National Board of Revenue to reduce the registration cost for secondary flats to help expand the segment of the housing market. The demand for secondary flats was good, but products were not available.

 

Thanks,

 

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Dhaka Stock Exchange | Investment Facilities for NRB

A Bangladeshi citizen living abroad with a valid status like foreign country’s permanent resident or with valid work permit is called NRB (Non-Resident Bangladeshi). In case of a foreign passport holder an endorsement either from the relevant Bangladeshi embassy or from Bangladesh foreign ministry stating that “No visa is required” for traveling to Bangladesh – as a proof of dual citizenship.

 

Incentives for Non-Resident Bangladeshis (NRBs):

• 10% quota in all Initial Public Offerings (IPOs) is reserved for non-resident Bangladeshis.
• Can also trade in the secondary capital market while abroad through Nominee.
• There is no Capital Gain tax on individual.
• Individual Income Tax assessment is similar to any other Resident Bangladeshi.
• @10% tax rebate on investment allowance on security investment.

 

How to Start:

• Open Foreign Currency (FC) Account that is needed for channeling foreign currency in as well as repatriation of earnings from investment.
• Open Non-Resident Investors Taka Account (NITA) that is required for converting foreign currency into BDT.
• Open a Custodian Account with any of the SEC registered Securities Custodian so that NRB & Foreign Investors may choose to appoint a Custodian to ensure trade execution and safe custody of shares.
• Open Beneficiary Owners (BO) Account with any brokerage house
• Assign a Nominee/ Power of Attorney (POA) - optional
• A nominee for inheritance/transmission, in case something happens to investor, is required to be assigned. Remember that this nominee and the POA may or may not be the same person.

 

Required Documents to open NITA and FC Account:

• Photocopy of Passport / Social Security Card / Resident Card etc duly attested (if you are situated in a foreign country then attestation needs to be done the respective Bangladesh Embassy or High Commission)
• Passport size photographs duly attested
• A Nominee - beneficiary in case of death of the investor. His/her signature and photo (duly attested by the investor) on the prescribed form provided by the brokerage house
• Employment Certificate / Trade license copy / work permit or Pay slip / tax return document as a proof of earning status of the NRB
• A nominated person with POA (Power of Attorney) who will sign trading documents on behalf of the NRB while he is abroad. His/her photo (attested by the NRB) and signature in a prescribed form by the brokerage house (POA can be any adult person of legal age residing in Bangladesh)
• If the broker is a bank then an extra form of KYC (Know your customer will also have to be filled)
• Initial fund will have to be a cheque or pay order or other allowed form drawn from the FC account

 

Required Documents for Custodian Account:

• Photocopy of Passport / Social Security Card / Resident Card etc duly attested (if you are situated in a foreign country then attestation needs to be done the respective Bangladesh Embassy or High Commission)
• Passport size photographs of Account Holder duly attested l Photographs of Authorized person
• A Nominee - beneficiary in case of death of the investor. His/her signature and photo (duly attested by the investor) on the prescribed form provided by the brokerage house
• Employment certificate / trade license copy / work permit or Pay slip / tax return document as a proof of earning status of the NRB

 

Required Document for Stock Broking and BO Accounts:

• Photocopy of Passport / Social Security Card / Resident Card etc duly attested (if you are situated in a foreign country then attestation needs to be done the respective Bangladesh Embassy or High Commission)
• Passport size photographs of Account Holder duly attested
• Photographs of Authorized person
• Photographs of Power of Attorney (POA)
• A Nominee - beneficiary in case of death of the investor. His/her signature and photo (duly attested by the investor) on the prescribed form provided by the brokerage house
• Bank Statement or Certificate from FC Account

 

How to Operate from Abroad:

• Collect the relevant forms from your preferred brokerage house via mail. Fill it up and get the introducer part attested by the local Bangladeshi Embassy as a proof of the NRB status by providing to them the required documents.
• Get your photos attested by the local Bangladesh Embassy as well
• Send the forms back to the brokerage house with the Nominee and POA part fi­lled in. Send the POA to the brokerage house.
• IPO application needs to be ­filled on a prescribed form. Such forms can be obtained through mail, website of issuing company, or through broker etc.
• Trading in secondary market is done by Buy/Sell order forms.
• If POA (Nominee) is assigned then the POA need to sign the Buy/Sell order form within 24 hours of order placement
• If NRB wishes not to assign a POA then orders can be placed via phone or email (broker approval required) and then a signed Buy/Sell order form needs to be faxed to broker within 24 hours
• Trading will be carried out within prevailing market guidelines
• Shares will be credited or debited to the BO account accordingly

Note:

If NRB is interested to avail custodian service then it is advisable to try to avail the service collectively. The custodial service provided by the local Custodians in Bangladesh (HSBC Limited, SCB Limited, Dhaka Bank Limited, South East Bank Limited, AB Bank Limited and Citi NA), is done through whole sale window not retail. As such they are not comfortable to provide custodial service to individual in a cost effective manner. The way to get collective custodial service is to contact any fund manager or international broker or global custody service provider in your locality and contact a custodian in Bangladesh through them. In this way you are free to have individual level BO and order placement without any problem through the intermediary. This process will easily enable you to take part in the secondary market with proper legal channels for foreign currency in and out.

For updated and latest information please visit the official website of DSE BD (Dhaka Stock exchange Ltd). 

Thanks,

 

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Dhaka Stock Exchange | Foreign Investors Guide

Bangladesh Government provides a very friendly and open investment atmosphere and facilities for foreign investors.  Any Foreigners residing in Bangladesh or abroad willing to invest in Bangladesh Capital Markets are considered as a Foreign Investors.

Guides for Foreign Investors:

• Open NITA (Non-resident Investment Taka Account) with AD (Authorized Dealer) of foreign currency department of any ­financial institution or through any custodians
• Select Custodian in Bangladesh (HSBC Limited, SCB Limited, Dhaka Bank Limited, South East Bank Limited, AB Bank Limited and Citi NA)
• Open BO through custodian
• Open Trading Account with preferred broker (optional as the custodian will provide the service through holding cash account (NITA) on behalf of the Foreign Investors)
• Start Trading

NITA Account:

• Non-resident Investment Taka Account (NITA) is an account for channeling foreign currency in as well as repatriation of earnings from investment
• All earnings from investments (e.g. Cash Dividends) are credited to the NITA account
• An audited statement, certifying that all proper taxes are already withheld from the earnings - usually taken care of by the custodian, for fund repatriation purpose

 

BO Account (Beneficiary Owners Account):

• BO account holds shares purchased or shares credited due to corporate declarations

 

Requirements for opening BO accounts (Individual):

• Photographs - duly attested
• Bank Statements
• Copy of pay slip or tax return (optional as a part of KYC [Know your Customer])
• Copy of employment certi­ficate or trade license (license to operate business at individual or proprietorship level)
• Copy of Passport
• Photographs of Nominee (beneficiary is case anything should happen to investor) and other details
• Filled other relevant forms
• Any other requirements by the custodian

 

Requirements for opening BO accounts (Institutional):

• Copies of Memorandum and Article of Association
• Certificate of Incorporation
• Copy of Board resolution permitting investment / trade in Bangladesh
• Custodian details
• Copy of Board resolution regarding authorized personal to handle the account and all relevant identification documents as well as specimen signature

 

Corporate Declarations:

• Cash dividend warrants goes to respective custodian and custodian decides the fate of such as instructed by the FI
• Share issued by stock dividend declaration goes directly to FI’s respective BO account

 

Common services provided by local Custodians:

• Account Services
• Trade settlement Services
• Registration services
• Safe keeping services
• Corporate Action services
• Foreign Exchange Services
• Cash management services
• Market expertise
• Escrow Services

Trading (Custodian ↔ Broker):

• Custodian usually receives orders via SWIFT or any other acceptable standard
• Custodian carries out share and monetary transactions with the local broker
• DVP (Delivery versus Payment): Delivers shares from FI’s specified BO to Brokers BO upon Receiving Payment only. DVP is applicable for sale orders
• RVP (Receive versus Payment): Receives shares to FI’s BO account of any other Omnibus BO as specified by FI and makes payment. RVP is applicable for buy orders
• For DVP the broker sends sale confirmation to FI which in turn is communicated by FI to custodian. Then Broker confirms payment amount and quantity of shares involved with custodian. Then broker pays the custodian to receive the shares.
• For RVP the broker sends buy confirmation to FI which in turn is communicated by FI to custodian. Then Broker confirms amount and quantity of shares involved with custodian for the transaction. After settlement with the Exchange (after prevailing settlement periods) the broker delivers the shares to the custodian to receive payment for the shares
• FI send buy/sale order notice to custodian and broker separately either directly or through fund manager/global custodian /international broker
• After execution of order the broker communicates with custodian to match the order
• Once the orders are matched the settlement between broker and custodian takes place

 

Tax Rates:

• No capital Gains Tax on individual (subject to the condition that such assesses is entitled to similar exemption in the country in which he is resident)
• Income tax is @25% for Individuals
• 25% tax at source is deducted by issuer in case of cash dividend

 

Important Notes:

1. Please note that it is advisable to hold BO accounts for each individual. This can be done by the custodians even if the custodian is arranged collectively by multiple investors. This should be done to avoid some regulatory complicacies e.g. avoiding substantial acquisition (10%) at individual investor level etc.
2. All local custodians provide custodial service at a whole sale level. As such they can easily provide custodial service to any institution or collective investors coming via a global custodian or fund manager or international broker. They may not agree to provide custodial service to individual investors even though there are no legal bindings except for high profi­le individual foreign investor.
3. Individual FI’s can best avail service if they come collectively through any global custody or fund manager or international broker such that the retail service part is not with the custodian. The local custodians do not have any problem opening BO’s at individual level even if they seek service collectively.

 

For updated and latest information please visit the official website of DSE BD (Dhaka Stock exchange Ltd).

 

Thanks,

 

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There is immense potential for the Tourism industry in Bangladesh. Although the development progress in this sector is going on slowly. This current progress of the tourism industry is due to the continuous progress of various initiatives of the government taken in the last few years such as infrastructural development, use of information technology, development of security system, political and social stability etc. Although due to a safe investment option, some foreign and domestic investors are getting interested to invest in this sector for higher return.

Recently, the government has taken various initiatives to exploit the immense potential of the tourism industry of the country. The size of the budget for the fiscal year 2020-21 is 5 lac 68 thousand crore BDT. Tk 3,634 crore has been allocated for the Ministry of Civil Aviation and Tourism. The government has taken short, medium and long term plans for the maximum development of the tourism industry of Bangladesh by the year 2025. The plan will be implemented at each level by dividing the entire country into eight tourist zones. For the first time, public-private joint ventures have been initiated for the implementation of these projects. As part of this, initiatives have been taken to implement 25 projects for construction of tourism infrastructure in tourist city Cox's Bazar. The direct investment in these will be around BDT 37,000 crore and indirect investment will be BDT 1 lac 97 thousand crore.

The famous investment company of Japan “Blue River Island Resort and Tourism Club Limited” has planned recently invests money on one of the government's tourism-based initiatives where they will construct an international standard tourism center at the Meghna River Char (Island) in Chandpur district. Total estimated cost of the mega project will be worth BDT 6,000 crore. It’s a joint venture project between Japan and Bangladesh. The investor company will get a high yield of return once after the completion of the project, since tourism is one of the best investment options around the world.

• Other tourism development projects of the government include:
• Development of Cox's Bazar Airport as an International Airport
• Construction of modern star hotels and motels
• Construction of power plant at Maheshkhali
• Development of Sonadia Island as a special tourist area
• Development of Inani Beach (Exclusive tourist Zone)
• Construction of Teknaf's Sabrang Eco Tourism Park
• Development of Shyamlapur and Jhilongjha Beach
• Construction of Chittagong-Cox’s Bazar Railway line
• Expansion of wind power project at Kutubdia
• Development of road communication system for tourists in Mini Sundarbans at Chakoria
• Modernization of Dulahajra Safari Park etc.

Besides, the Government is going to take four more new projects to develop the tourism industry of Bangladesh. At present there is a railway line from Chittagong to Dohazari. This line is being further reformed. Railway is being constructed from Dohazari to Ghumdhum via Cox's Bazar. About BDT 20 thousand crore will be invested in this sector. Already about BDT 4 thousand crore has been spent. Bangladesh Tourism Corporation has taken initiative to build two more motels in Cox's Bazar. Expenditure in this sector has been estimated at Tk 800 crore. A large guest house is being built there at the initiative of Bangladesh Air Force.

An eco-tourism park is being set up in the Teknaf area. An island is being developed in the middle of the Naf River as a special tourist area. Maheshkhali is being developed as a power hub. Billions of BDT are being invested as safe investment only in Maheshkhali area. Initiatives have been taken to develop Sonadia Island as an economic zone and a tourist area. There is a wind power project on Kutubdia Island. Many tourists go there to see it. For this reason, it is being further expanded.

Apart from Cox's Bazar, seven projects have been identified for implementation in public-private partnership (PPP) in different parts of the country. These include the Payra Deep Seaport and the tourism development project in the vicinity of the port area. Khanjahan Ali Airport construction project has been scheduled. Besides, a project is being taken to build infrastructure for those who visit Tanguar Haor at Tahirpur in Sunamganj. A study project will also be taken up around the Sundarbans. Various such initiatives have been taken and are being implemented continuously. The projects under PPP are at different stages of processing. Some of the ongoing projects to increase facilities for tourists in the tourism sector of Bangladesh are:

• Introduction of tourism facilities in Chittagong Parki beach
• Development of tourism facilities in some interesting areas of the country on the occasion of Tourism Year
• Construction of tourist building at Agargaon in the capital
• National Training and Tourism Training Institute and damaged Sonamasjid project in Chapainawabganj etc.

One of these development projects is the recent construction of 80 km long marine drive road from Cox's Bazar to Teknaf which was one of the recent best investment form the government. As a result, the tourist city of Cox's Bazar, INANI beach has become more attractive to domestic and foreign tourists. The present government has planned to build three tourist parks in Cox's Bazar to attract tourists from different countries of the world. This will create an additional USD two billion in economic activity every year. The three tourism parks are Sabrang Tourism Park, Naf Tourism Park and Sonadia Eco Tourism Park. About 40,000 jobs will be created in these places.

The steps taken by the present government, especially the announcement to build Naf Tourism Park, will accelerate the development of tourism industry of Bangladesh. Because the famous Thai company Siam International Co Ltd is investing in it as a safe investment option. Initially, the company will invest US$ 50 Crore. The project, worth more than BDT 4,200 crore, will provide employment to more than 12,000 people across 271 acres of land. The project cost for the development of Naf Tourism Park is Tk. 170 crore. Meanwhile, Bangladesh Economic Zone Authority (BEZA) has undertaken the development work of Naf Tourism Park.

Sabrang Tourism Park is going to be the first tourism dependent economic zone of the country under the development project of the government. This tourist area is being developed on the Sabrang beach in Teknaf, Cox's Bazar. Domestic and foreign entrepreneurs are showing interest to make investment in Bangladesh tourism sector in this planned modern tourist park. As investment in tourism sectors known as one of the more secure and safest way to invest money with higher return options.

The Bangladesh Economic Zone Authority (BEZA) has received investment proposals from several companies. After reviewing these, the executive board of BEZA has already approved the proposals of 12 companies. The companies will build Star hotels, Motels and Resorts in the park. According to their proposal, about US$ 25 crore will be invested here which will take the Tourism industry of Bangladesh to a new level. According to BEZA, this tourism park is being built on 1,048 acres of land with state-of-the-art facilities to make it attractive to the tourists. The 12 companies whose proposals were approved will build various constructions on 116 acres of land. It will provide employment to 10 thousand people.

Lots of star class hotels, motels, resorts, parks, restaurants etc has been built in Cox’s Bazar city and around in the past recent years. Individual peoples are getting interested to make investments in this sector since they are always looking for safe investment options. Various private developer or hotel companies are constructing world class chain hotels at Inani and Cox’s Bazar beside the marine drive road as partnership / share basis. Anyone can make an investment in these types of projects for their future as safe investments with high returns. Al-Jesour Resort Ltd is constructing a 5-Star Studio Hotel and Serviced Apartment named “Prashad Sholilkul” on their own land at Inani beach beside the Marine drive road which is expected to be completed within 2025. Most of the government projects to develop the Tourism Industry of Bangladesh in Cox’s bazar, Inani, Teknaf, Maheshkhali, Sonadia and adjacent area around will be completed within or after the year 2025. Then this zone will become the Tourist hotspot and Tourism Capital of Bangladesh.

Moreover, the present government has formed a district-based tourism committee to modernize tourism industry of the whole country. Tourism offices have been opened in every district. Their job is to identify and further modernize the potential tourist spots in each district. Bangladesh Tourism Corporation is being modernized in a new way. Recently, the government has adopted a master plan for the massive development and growth of the tourism industry as well as attracting domestic and foreign tourists. The Bangladesh Tourism Board under the supervision of the Ministry of Civil Aviation and Tourism is formulating a master plan for the development of the tourism industry in Bangladesh.

Tourism development work will be carried out as per short, medium and long term plans as part of the master plan. It has been decided to celebrate 2016-2021 as the years of tourism. In order to develop and bloom, an estimated expenditure of TK 200 crore has been incurred in the three financial years 2015-2018. This will ensure planned development of existing and potential places in the tourism industry of Bangladesh.

In recent years, many nongovernmental organizations and companies, including the government, have sought to transform tourism into an economically viable sector. Domestic and Foreign investors are ready to invest as safe investment in this sector. Therefore, in order to increase research activities in the development of the tourism industry, various institutions at the private level are constantly approving the provision of higher education on tourism including the government universities of the country. Bangladesh Tourism Corporation, founded by Bangabandhu Sheikh Mujibur Rahman, is working to build manpower through their training centers. Two new centers are being set up in Barisal and Cox's Bazar outside the Dhaka office of the National Hotel and Tourism Training Institute run by the Tourism Corporation to develop skilled tourism workers. Besides, tour operator law and tourism corporation law are being made.

The addition of tourism industry in Bangladesh to the development journey of the country will not only bring financial benefits, but also spread its benefits at the marginal level through the participation of the locals. The tourism industry could become one of the tools for Bangladesh to achieve the Sustainable Development Goals by 2030. For this, it is necessary to give utmost importance to the tourism industry of Bangladesh in the development thinking of the government.

 

Thanks,

 

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