Old Dhaka traders for package VAT on essentials to contain inflation

Traders, especially small and medium entrepreneurs, of Old Dhaka are facing various challenges due to unbearable traffic congestion, waterlogging, weak infrastructure, inadequate access to finance to SMEs, deteriorated law and order situation, increased dollar price, delay in import and export procedures, high rate of interest on loan, increased VAT and tax rate, and complex revenue structure.

Old Dhaka businessmen identified these problems while speaking at a view-exchange meeting organised by the Dhaka Chamber of Commerce and Industry (DCCI) in the capital's Lalbagh today (8 February), according to a press release.

Business leaders of different specialised associations of Old Dhaka and representatives of several other business organisations attended the discussion.

Participating in the open discussion session, the representatives of the trade associations of Old Dhaka emphasised introducing a package VAT system on essential commodities to contain inflation, simplifying the tax and VAT system, easing traffic congestion, improving the law and order situation especially to control juvenile gangs, imposition of duty on tariff value of imported products, reduction of VAT rate, stopping the misuse of import under bond licence facility, reducing government's expenditure, and automation and simplification of process at the ports.

Dhaka Metropolitan Police Deputy Commissioner (Lalbagh Division) Md Jashim Uddin, Chief Economist's Unit Director (Research) Dr Md Selim Al Mamun, and Manash Kumar Barman, additional commissioner of National Board of Revenue's Custom, Excise and Vat Commissionerate (South, Dhaka), were present on the occasion as special guests as public sector representatives.

Addressing the discussion, DCCI President Taskeen Ahmed stressed the need for simplifying the tax and VAT system according to the size, nature, and capacity of the businesses, removing complexity and bottlenecks in the import-export procedures, and fixing a realistic VAT rate.

He said that despite being one of the ancient business hubs for trade and commerce for hundreds of years, the entrepreneurs of Old Dhaka have been facing various problems due to increasing traffic congestion, lack of infrastructure, and tax and VAT issues.

In order to solve these problems, joint initiative both from the government and private sector is needed, he added. He also said that for a business-friendly environment, improving law and order situations is a must.