There is no alternative to radical reforms and the modernization of the trade and investment framework to address Bangladesh’s post-LDC challenges,” said Dhaka Chamber of Commerce and Industry (DCCI) president Taskeen Ahmed.
At a meeting with Commerce Adviser Sk Bashir Uddin on Sunday, he pointed out the need for reforms in the import-export policy, revenue structure, financial management, logistics policy, national budget, and monetary policy, according to a release.
He informed the adviser that Bangladesh could not adequately prepare for the post-LDC era challenges due to the COVID-19 pandemic, the Russia-Ukraine war, unrest in the Middle East, and the political unrest in the country ahead of the 2024 elections.
He suggested that the government consider deferring the graduation process temporarily to allow more time for necessary preparations, as Bangladesh will lose several preferential treatments in the international market once it graduates.
At the same time, Bangladesh needs to formulate a “smooth transition strategy” for proper implementation, based on a series of public-private dialogues, alongside providing necessary support to the private sector to sustain business and investment flow, he added.
He also informed the commerce adviser that the National Board of Revenue’s recent decision to raise VAT and taxes on over 100 products and services has caused concern among the public and businesses. This move is likely to further fuel inflation and raise the cost of doing business, particularly in the current economic climate.
“The decision to increase VAT and taxes in this situation is not acceptable, especially ahead of the upcoming Ramadan,” Taskeen Ahmed said, calling for stronger market monitoring to address existing irregularities in the supply chain.
Furthermore, he suggested that the commerce ministry should take strict measures to increase the supply of essential products, monitor the market, and ensure the availability of essential goods, especially during Ramadan.
In response, Sk Bashir Uddin stated that the supply chain had been severely disrupted due to the July student uprising, its impact on the overall law and order situation, and unexpected floods in various parts of the country.
However, he assured that the overall situation is already improving and that the government is working tirelessly to further enhance the situation.
He expressed hope that the prices of essential commodities would remain stable during Ramadan, although the recent rise in rice prices is a concern for the government. Nevertheless, he noted that the government is working to keep the price at a manageable level.
The adviser emphasized the importance of expanding tax collection and broadening the tax base to control inflation and sustain economic development.
Acknowledging the post-LDC challenges, he also recognized the need for reforms in existing trade and investment policies.
He stressed the importance of revisiting the Smooth Transition Strategy (STS) to make it more inclusive and actionable.
To attract local and foreign investment, he stated that policy support and consistency are crucial, and called for enhancing the private sector’s capacity to confront the upcoming challenges the country will face.
DCCI senior vice-president Razeev H Chowdhury and vice-president Md Salem Sulaiman also attended the meeting.
