The National Board of Revenue (NBR) has reduced Value Added Tax (VAT) and supplementary duties on some of the goods and services, two weeks after hiking taxes on more than 100 commodities and services. The services with reduced taxes and duties include mobile network services, restaurants, sweets, non-AC hotels, and workshops. The development came in the face of huge criticism and protests from the businesses as well as the masses.

The supplementary duty on mobile phone services, including talk time and internet usage, was raised from 20 percent to 23 percent in the ordinance. This has now been reverted to the previous rate. At the same time, the 10 percent supplementary duty on internet service providers (ISPs) has been fully withdrawn. VAT on restaurant bills, which was increased from 5 percent to 15 percent, has been reverted to the previous threshold of 5 percent. The hike in VAT for locally-made medicines was also withdrawn.

The government has promulgated a judges appointment ordinance, with a provision of an independent council for appointing judges in the Supreme Court. Other notable initiatives include introduction of a separate secretariat for the judiciary and a permanent attorney service. Law affairs adviser Asif Nazrul made the disclosure at a press briefing at the secretariat in the afternoon on Tuesday. The adviser hoped that all future appointments will be made through the newly introduced council.

The ordinance introduces a 'supreme judicial appointment council' with six members - chief justice as the head, two justices from the Appellate Division (one retired and one serving), two High Court judges, and the attorney general. Explaining the process, Asif Nazrul said the council will collect the names of potential candidates, while there will also be a scope for any individual or lawyer to propose or apply for the positions. The council will carry out primary screening and interview the candidates before proceeding towards further steps.

The release of the fourth tranche of Bangladesh's $4.7 billion budget support loan from the International Monetary Fund (IMF) has been deferred until March, primarily due to scheduling adjustments caused by natural disasters. A senior official at Bangladesh Bank told our sister newsagency UNB that the matter was initially set for discussion in the IMF executive board meeting on February 5. But the meeting has been postponed, with the new date set for March 12.

The IMF's month-long closure of activities, prompted by natural disasters, is cited as the main reason behind the change in the schedule. The global lender has emphasised several conditions tied to the loan's release. One critical demand is the liberalisation of the US dollar exchange rate, which the central bank is reportedly aligning with market trends. While IMF officials have raised concerns regarding these targets, an NBR source has stated that measures to enhance revenue collection are already underway and there are no significant hurdles from their side.

The Bangladesh Bank has enlisted global auditing firms Ernst and Young (EY) and KPMG to evaluate the asset quality of six banks currently mired in financial irregularities and corruption. The audit, funded by the Asian Development Bank, is part of efforts to restore transparency and accountability in the banking sector. The six banks are First Security Islami Bank, Exim Bank, Global Islami Bank, Social Islami Bank, ICB Islamic Bank and Union Bank.

EY will focus on Global Islami Bank, Social Islami Bank and ICB Islamic Bank, while KPMG will handle First Security Islami Bank, Exim Bank and Union Bank, according to central bank sources. Notably, four of the six banks are associated with the S Alam Group, a business conglomerate linked to former prime minister Sheikh Hasina. Following the political transition in August, the central bank restructured the boards of directors for these banks. The audit's findings would determine whether the managing directors of these banks can resume their positions.