Businesses urge improvement in law and order

Businesses at a dialogue on Tuesday stressed the need for an improved law and order situation to support their operations.

They also demanded the government's prioritised measures for resolving the energy crisis to ensure manufacturers' competitiveness in the global market, warning the ongoing crisis could severely impact manufacturing.

Besides, they emphasised the importance of better consultations with local and foreign investors to improve the trade and investment climate.

The observations and suggestions came at the dialogue titled "Trade and Investment Growth: Business Consultation, Law & Order, and Energy Crisis Management Hold the Key" and organised by the American Chamber of Commerce in Bangladesh (AmCham) at a hotel in the capital.

Speaking at the event as the chief guest, Commerce Adviser Sk Bashir Uddin urged businesses to focus on current operations rather than worrying about future uncertainties, saying such concerns are hampering economic growth.

The government is addressing the key issues, such as law and order as well as inflation, which are impacting the economy, he said, stressing the importance of public-private collaborations to drive growth and attract foreign investments.

He further highlighted the government's efforts to create a more favourable environment for both local and foreign investors by simplifying business regulations and improving infrastructure.

Foreign Investors' Chamber of Commerce and Industry (FICCI) President Zaved Akhtar commended several government initiatives, particularly the granting of Authorised Economic Operator (AEO) status to 10 businesses, which he termed a significant economic boost.

He, however, expressed concerns about the lack of business consultations when drafting laws, saying this is impacting the economy. He also highlighted the complexities of registration, certification, and other regulatory processes.

To address these challenges, Zaved, also the chairman and managing director of Unilever Bangladesh, proposed a government-managed portal. Local and foreign investors will report issues there, while the government will review those and give a time frame for resolution.

This, the business leader said, would ultimately boost investors' confidence and increase investments.

Highlighting the key areas of improvement, AmCham President Syed Ershad Ahmed emphasised the need for stabilising law and order, enhancing business sector consultations, and urging the National Board of Revenue (NBR) to establish separate wings for policy and implementation.

He also called for customs automation, elimination of manual signatures, and introduction of double taxation relief.

The Export Promotion Bureau (EPB) should focus on new export markets, research and development, and training as trade shows are proving ineffective, he said, raising concerns about the insufficient facilitation of cargo transportation between the Dhaka inland container depot (ICD) and the Chattogram port, which is leading to delays in raw material shipments.

Furthermore, Ershad underscored the significance of policy stability to attract long-term investments while also strengthening the Bangladesh Competition Commission and intellectual property rights.

Coca-Cola and PepsiCo representatives raised concerns over high supplementary duty, sugar tax, and minimum tax, urging a reduction in supplementary duty (SD) from 30 per cent to 25 per cent and turnover tax from 3.0 per cent to 0.6 per cent to boost investments, create jobs, and drive business growth.

Representatives from the financial services industry requested the waiver of mandatory income tax return slips for issuing credit cards with limits of up to Tk 0.5 million, in alignment with the Income Tax Ordinance, to promote greater financial inclusion.

Textile and recycling industry stakeholders highlighted the need to remove VAT on recycled cotton and treat it like virgin cotton.

This adjustment would foster sustainability, support the eco-friendly textile sector, and encourage the adoption of circular economy practices within the industry, they said.

They also stressed stakeholder consultations before making any decision.

British American Tobacco Bangladesh representatives highlighted the recent sharp and abrupt SD increase, along with VAT and health surcharge, exceeds the World Health Organisation (WHO) recommendations, putting at risk the sustainability of a legal industry that supports 4.4 million livelihoods and contributes to over 11 per cent of the government exchequer.

Md Moinul Huq, Citi Country Officer of Citibank NA in Bangladesh, provided an insightful overview of the economy, while Syed Mohammad Kamal, former AmCham vice-president and country manager at Mastercard Singapore Holding Pte Ltd, moderated the discussion.

Among others, AmCham Treasurer Al-Mamun M Rashel; executive committee members Md Moinul Huq, Abu Muhammad Rashed Mujib Noman, and Mirza Shajib Raihan; and John Fay, commercial counsellor in the Department of Commerce at the US embassy in Bangladesh; attended the dialogue.

Munni_fe@yahoo.com