Business leaders have called for improving law and order situation and maintain policy stability to improve business climate in the country.
They spoke at a dialogue on “Trade and Investment Growth: Business Consultation, Law & Order, and Energy Crisis Management Hold the Key,” organised by the American Chamber of Commerce in Bangladesh (AmCham) in Dhaka on Monday, according to a release.
AmCham president Syed Ershad Ahmed emphasised the need for stabilising law and order, enhancing business sector consultations, and advocating for the NBR to establish separate wings for policy and implementation.
He also called for customs automation, the elimination of manual signatures, and the introduction of double taxation relief.
Ershad also stressed the importance of the EPB focusing on new export markets, R&D, and training, as trade shows are proving ineffective.
He raised concerns about the insufficient facilitation of cargo transportation between Dhaka ICD and Chattogram port, leading to delays in raw material shipments. Furthermore, he underscored the significance of policy stability to attract long-term investment while strengthening the Bangladesh Competition Commission and Intellectual Property Rights.
At the event, beverage industry representatives Coca-Cola and PepsiCo raised concerns over high supplementary duty, sugar tax, and minimum tax, urging a reduction in SD from 30% to 25% and turnover tax from 3% to 0.6% to boost investment, create jobs, and drive business growth.
A key point raised by the financial services industry was the request for the waiver of mandatory Income Tax Return slips for credit card issuance up to Tk5 lakh, in alignment with the Income Tax Ordinance, to promote greater financial inclusion.
The energy sector emphasized that the ongoing energy crisis could severely impact manufacturing unless proactive measures are taken. The government must prioritise resolving the energy crisis to ensure manufacturers remain competitive in the global market.
In the textile and recycling industry, stakeholders highlighted the need to remove VAT on
recycled cotton, treating it similarly to virgin cotton. This adjustment would foster
sustainability, support the eco-friendly textile sector, and encourage the adoption of circular
economy practices within the industry.
British American Tobacco Bangladesh, highlighted that a recent sharp and abrupt SD increase, along with VAT and health surcharge, exceeds WHO recommendations, risking the sustainability of a legal industry supporting 4.4 million livelihoods and contributing
over 11% to the government exchequer’s revenue.
Addressing the dialogue, Commerce Adviser Sk Bashir Uddin emphasized the
government’s efforts to create a more favorable environment for both local and foreign
investors by simplifying business regulations and improving infrastructure.
He urged businesses to focus on current operations rather than worrying about future uncertainties, as this concern is hampering economic growth.
He reassured that the government is addressing key issues such as law and order challenges and inflation, which are impacting the economy, and stressed the importance of public-private collaboration to drive growth and attract foreign investments.
