Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed has criticized recent government policies, including increased VAT on over 100 products, higher taxes on certain industries, and a proposal to more than double gas prices for the industrial sector.
He described these measures as “catastrophic” for business, trade, investment, and the overall economy.
“The increasing VAT, taxes, and the proposed gas price hike will be suicidal for the economy,” he stated during a press conference held at the DCCI auditorium on January 11, 2025. Ahmed addressed various pressing economic issues and outlined the Chamber’s priorities for the year.
Ahmed noted that the private sector is already grappling with global geopolitical instability, rising import costs, high energy prices, inflation, elevated interest rates, increasing tariffs, and a deteriorating law-and-order situation. He emphasized that addressing these challenges is critical to sustaining economic growth.
The DCCI President announced that the Chamber would prioritize reducing interest rates, controlling inflation, and stabilizing the foreign exchange rate.
Responding to questions from reporters, he highlighted the importance of accelerating the flow of low-cost finance to the CMSME (Cottage, Micro, Small, and Medium Enterprises) sector, which he identified as the largest contributor to employment generation in Bangladesh.
Ahmed expressed concerns about the feasibility of completing 100 economic zones by 2030, suggesting that focusing on fully equipping five zones with the necessary infrastructure would attract both domestic and foreign investment.
He also stressed the importance of maintaining a long-term, supportive tax structure to encourage entrepreneurship. Sudden increases in taxes or duties could deter local and foreign investment, he warned.
Regarding Bangladesh’s preparation for graduating from Least Developed Country (LDC) status in 2026, Ahmed acknowledged setbacks caused by the COVID-19 pandemic, the Russia-Ukraine war, and local political unrest.
He urged comprehensive discussions among stakeholders to assess the country’s readiness, suggesting that the government consider deferring graduation if necessary.
However, he emphasized that, if the transition proceeds as planned, the government must ensure substantial support for the private sector to overcome associated challenges.
Ahmed highlighted Bangladesh’s low tax-GDP ratio and inadequate number of taxpayers as significant hurdles.
To address the budget deficit and reduce economic pressure, he urged the government to adopt austerity measures, avoid unnecessary projects, and enhance monitoring of Annual Development Program (ADP) implementation to ensure timely completion.
The press conference was also attended by DCCI Senior Vice President Razeev H. Chowdhury, Vice President Md. Salem Sulaiman, and other board members.
