Task force suggests regulatory reform to address bureaucratic red tape

A government task force has suggested creating a Regulatory Reform Commission (RRC) to address the pervasive issues of over-regulation and red tape in the bureaucracy, governance, businesses and tax regime. 

"Over-regulation and bureaucratic red tape hindering business growth and foreign investment. To address the pervasive issue, a Regulatory Reform Commission (RRC) is imperative," the task force report said.

Education and Planning Adviser Wahiduddin Mahmud handed over the report on "Re-strategising the Economy and Mobilising Resources for Equitable and Sustainable Development" to Chief Adviser Muhammad Yunus here Thursday.

The report says the task of the RRC will be continuously monitoring, evaluating, and streamlining the rules and regulations affecting all aspects of economic governance, including business operations, taxation and trade.

The RRC will actively identify regulatory inefficiencies, such as excessive paperwork, burdensome compliance requirements, and the discretionary powers of authorities like the National Board of Revenue (NBR) and the Customs Department.

By flagging these challenges to the government and relevant ministries, the RRC can advocate for reforms that would facilitate a more conducive business environment, the task force says.

"This reform initiative has the potential to dramatically enhance the Ease of Doing Business (EODB) in Bangladesh, making the country an attractive destination for both domestic and foreign investors," the task force report says.

The task force recommended forming a high-powered National Board of Revenue (NBR) Oversight Committee with proportionate representation from the private sector, civil society, and government.

The committee will assess, evaluate and recommend to the Chief Adviser on how NBR should be restructured for removing inconsistent, arbitrary, and discriminatory policy/regulatory barriers related to customs, VAT and taxes, the task force said.

The task force suggested taking urgent steps to set up at least one Center of Global Excellence for postgraduate teaching and research focusing on STEM (Science, Technology, Engineering, and Mathematics), Engineering, and ICT/AI (Information and Communication Technology/ Artificial Intelligence) on the outskirts of Dhaka city within the next five years.

Such centre of excellence will not only enhance the local education landscape but also aim to attract international scholars and researchers, the report reads.

About Bangladesh Biman, the task force observed that for over half a century, the national flag carrier failed to meet modern aviation standards and performance benchmarks.

Biman is continuing its existence largely depending only on serving a captive market of migrant labourers, many of whom have reported poor services.

To ensure Biman's competitiveness in the airlines market, the government must ascertain a clear and measurable performance target for the airline, the task force said.

If Biman's performance consistently falls short, the task force proposes creating an entirely new airline, Bangladesh Airways, which will be utilising half of Biman's existing assets but managed by an independent, world-class management company.

The task force also recommended establishing an independent Centre for Social and Behavioural Change Communication and Research (CSBCC&R) to address the fragmented nature of current efforts in this critical area.

The CSBCC&R would provide a structured platform for both traditional media and digital communication strategies, while it would focus on modernising communication approaches, employing evidence-based strategies to engage communities effectively, according to the report.

The Interim government constituted the 12-member task force on 10 September last year to reframe the development strategies, find out leakages in the financial system and restore discipline in project implementation.