Photo: BSS

DHAKA, April 26, 2025 (BSS) – Businessmen in a view-exchange meeting today urged the government for ensuring easier VAT management as well as improved law and order situation for conducting smooth business operations.

They said despite having international geo-political impact, the overall trade and investment situation is facing high rate of interest on bank loans, lack of access to finance, higher VAT and tax rates and its complex management system, lack of automation, and traffic congestion.

The small traders of Dhanmondi, Mohammadpur, Shaymoli and Adabar areas said this in an interactive view-exchange meeting organized by Dhaka Chamber of Commerce & Industry (DCCI) on recent trade and investment scenario and other related issues at Tokyo Square Convention Centre in the city’s Mohammadpur today.

The discussion meeting was chaired by Taskeen Ahmed, President of DCCI, said a press release.

Dhaka Chamber President Taskeen Ahmed, in his opening speech, said that under the current circumstances, there is no alternative to building a safe, stable and predictable business environment.

Taskeen Ahmed said that Dhaka Chamber has already proposed to bring the overall revenue management under full automation in the upcoming budget along with rationalizing tax rates, introducing single digit VAT rate and fixing 1% VAT for the informal sector and introducing a VAT return app, which will improve the business environment and increase the government's revenue collection.
 
He also said that easy access to credit, bringing mobility by implementing automation in export-import operations and timely policy support from the government is necessary to continue the growth of industrialization.
Taskeen said that the businessmen want to pay tax. “We pay tax and VAT, but we don’t want any harassment.”

Regarding law and order, he said it is inevitable to ensure the rule of law and its enforcement to make sure that business operations remain active at any level.   

Mohammad Mostafizur Rahman, Additional Director (SME and Special Programs Department), Bangladesh Bank, said that the central bank issued a master circular on March 17, 2025 to increase the credit flow to the SME sector.

To facilitate the businessmen, the period of term loan has been extended to 7 years from previous 5 years since the investors need at least 2 years for establishing factories, he added .

He also said that under different schemes, Bangladesh Bank has created a fund of Taka 25,000 crore only for the SME entrepreneurs, where entrepreneurs can avail loans at a maximum interest rate of 7%, for women entrepreneurs it is only 5% while for the agro-entrepreneurs it is also very low.

Mostafizur also mentioned that the Cash Reserve Ratio (CRR) has been reduced from 5.50% to 3% recently to increase credit flow to the private sector.

Additional Commissioner of Customs, Excise and VAT Commissionerate, Dhaka (West) Md. Milon Sheikh said that the growth of VAT collection especially in Mohammadpur and adjacent areas has increased by about 15-20 percent this year while 98% of the small businesses in this area have been brought under the VAT registration over the last three months.

Regarding a proposal of creating a mobile app for online VAT registration, he opined that it is a good move while the government could consider such an idea in the future as because it would reduce human contact and harassment.

Milon also requested the SME businessmen not to ignore the VAT issue rather try to know in details of the VAT law for their own interest.

In the open discussion session, Member of Tokyo Square Convention Shop Owners Association Mohammad Hiru, President of Rapa Plaza Shop Owners Association Motahar Hossain, President of Town Hall Market Association Lutfor Rahman Bablu, Joint Secretary of Bangladesh Brick Association Nazrul Islam, Tax Consultant Probir Kumar Pal and other traders of different associations spoke on the occasion.

They called for simplifying VAT return submission process, widening the VAT net, introducing VAT return app, improving law and order situation, controlling extortion, reducing traffic congestion, reducing interest rate on bank loans, easy access to finance for the SME sector and reducing harassment at all levels for the small traders.

DCCI Senior Vice-President Razeev H Chowdhury, Vice -resident Md. Salem Sulaiman and members of the board of directors of DCCI were also present on the occasion.

Md. Alamgir Kabir, Additional Deputy Commissioner of Police (Tejgaon Zone) of Dhaka Metropolitan Police (DMP) and Additional Deputy Commissioner of Police (Traffic, Tejgaon Zone) Tania Sultana spoke, among others, on the occasion.
 
Meanwhile, 27 business entities of Dhaka got DCCI’s membership at the event as DCCI President Taskeen Ahmed handed over their membership certificates to the representatives of those business organizations.