Businesses identify 107 business hurdles, customs-VAT top list
Businesses have identified at least 107 obstacles to improving the ease of doing business in Bangladesh, with customs and VAT-related issues accounting for the largest share at 37.
The issues span several government agencies, including the Finance Ministry, Commerce Ministry, customs and tax authorities, Environment Ministry, Bangladesh Bank and Home Ministry.
Business leaders raised the concerns at the first meeting of a committee on ease of doing business yesterday, attended by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, Commerce Minister Khandakar Abdul Muktadir and other ministers.
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Sources said a 22-member committee, comprising representatives from the government and private sector, has been formed following the directives from the prime minister to identify barriers to business and coordinate efforts to remove them.
Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, told TBS that 107 issues had been identified, including 37 related to customs and VAT, with some already under consideration for resolution.
Babu said the first meeting had raised expectations among businesses that long-standing problems would be addressed.
Progress will be reviewed at the next meeting, he added.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said businesses faced major difficulties involving customs, bonded warehouses, VAT and income tax.
These include alleged arbitrary decisions by customs officials over harmonised system codes and product valuation, delays and harassment during product inspections, seeking illicit financial facilities during audits of bonded-warehouse licence holders, and complications in approving raw material entitlement, the business leader, who was not present at the meeting, told this newspaper over a mobile phone.
He said the problems had been discussed for years but had seen little meaningful resolution.
Hatem said the committee's formation under the prime minister's directive could strengthen accountability and help ensure effective action to remove long-standing barriers to business.
Rupali Haque Chowdhury, president of the Foreign Investors' Chamber of Commerce and Industry, said delays in issuing work permits and processing visas remained major concerns, particularly involving the Home Ministry.
Slow automation at the National Board of Revenue, delayed tax refunds and harassment of compliant companies through audits were also raised at the meeting, the business leaders said.
They also highlighted difficulties and delays in obtaining visas and work permits for foreign nationals.
Businesses welcome quick measures
Meeting sources said the government had directed relevant agencies to address some issues promptly. Officials are expected to present a detailed progress report at the next meeting, planned within a month.
Rupali Chowdhury said one immediate measure would allow industrial facilities to begin operations after receiving the necessary approval, without waiting for separate fire safety and environmental clearances.
Under the proposed arrangement, the relevant departments would conduct inspections in coordination and submit their reports within a specified timeframe, she said.
She said the move could reduce delays and make business operations easier.
Rupali Chowdhury added that applications could be deemed approved if the relevant authorities failed to make decisions within the stipulated timeframe.
Hatem said the committee's formation under the prime minister's directive could strengthen accountability and help ensure effective action to remove long-standing barriers to business.
