Govt working efforts to create env for local, foreign investors simplifying business regulations: Commerce adviser 

Photo: Courtesy

Sk Bashir Uddin, adviser to the Ministry of Commerce, emphasised the government's efforts to create a more favorable environment for both local and foreign investors by simplifying business regulations and improving infrastructure. 

Speaking at a dialogue hosted by the American Chamber of Commerce in Bangladesh (AmCham) today, he urged businesses to focus on current operations rather than worrying about future uncertainties, as this concern is hampering economic growth. 

He reassured that the government is addressing key issues such as law and order challenges and inflation, which are impacting the economy, and stressed the importance of public-private collaboration to drive growth and attract foreign investments.

The AmCham hosted a Dialogue on "Trade and Investment Growth: Business Consultation, Law & Order, and Energy Crisis Management Hold the Key", at the Sheraton Hotel, Banani, with the commerce adviser attending as guest of honour, said a press release. 

The event was attended by senior officials from BIDA, Ministry of Commerce, NBR, and Bangladesh Bank.

Syed Ershad Ahmed, president of AmCham, welcomed the guests with his opening remarks, highlighting key areas for improvement. 

He emphasised the need for stabilising law and order, enhancing business sector consultations, and advocating for the NBR to establish separate wings for policy and implementation. 

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

Ahmed stressed the importance of the EPB focusing on new export markets, R&D, and training, as trade shows are proving ineffective. 

He raised concerns about the insufficient facilitation of cargo transportation between Dhaka ICD and Chattogram port, leading to delays in raw material shipments. 

Furthermore, he underscored the significance of policy stability to attract long-term investment while strengthening the Bangladesh Competition Commission and Intellectual Property Rights. 

AmCham Treasurer Al-Mamun M Rashel, Executive Committee Members Md. Moinul Huq, Rashed Mujib Noman, and Mirza Shajib Raihan, along with several AmCham members, participated in the event. 

Additionally, representatives from Citi N.A., VISA & MasterCard, HSBC, Philip Morris, RBD Fibers Limited, MetLife, Chevron, Avery Dennison, BAT, Coca-Cola, PepsiCo, GE, BanglaTrac, and other local and foreign investors attended the dialogue. Mr. John Fay, Commercial Counselor at the U.S. Embassy Dhaka, was also present.

Md. Moinul Huq, Citi country officer, Bangladesh, Citibank, N.A., provided an insightful overview of the economy, while Syed Mohammad Kamal, former Vice President of AmCham and Country Manager at MasterCard Singapore Holding Pte. Ltd., expertly moderated the discussion.John Fay, Commercial Counselor, U.S. Embassy, also attended the dialogue, with LightCastle Partners supporting the event as the knowledge partner. 

The discussion focused on the need for improved law and order to support business operations. 

It also circled the importance of better consultation with local and foreign investors to enhance the trade and investment climate. Beverage industry representatives Coca-Cola and PepsiCo raised concerns over high supplementary duty, sugar tax, and minimum tax, urging a reduction in SD from 30% to 25% and turnover tax from 3% to 0.6% to boost investment, create jobs, and drive business growth. 

A key point raised by the financial services industry was the request for the waiver of mandatory Income Tax Return slips for credit card issuance up to Tk5 lakh, in alignment with the Income Tax Ordinance, to promote greater financial inclusion. 

The energy sector emphasised that the ongoing energy crisis could severely impact manufacturing unless proactive measures are taken. The representatives said the government must prioritize resolving the energy crisis to ensure manufacturers remain competitive in the global market.

In the textile and recycling industry, stakeholders highlighted the need to remove VAT on recycled cotton, treating it similarly to virgin cotton. This adjustment would foster sustainability, support the eco-friendly textile sector, and encourage the adoption of circular economy practices within the industry. Stakeholder consultation is key before decisions. 

The tobacco industry, British American Tobacco Bangladesh, highlighted that a recent sharp and abrupt SD increase, along with VAT and health surcharge, exceeds WHO recommendations, risking the sustainability of a legal industry supporting 4.4 million livelihoods and contributing over 11% to the government exchequer's revenue.

FICCI President and Chairman and Managing Director, Unilever Bangladesh, Zaved Akhtar commended several government initiatives, particularly granting Authorized Economic Operator (AEO) status to 10 businesses, a significant economic boost. 

However, he expressed concerns about the lack of business consultation when drafting laws impacting the economy. 

He also highlighted the complexity of the registration, certification, and other regulatory processes. 

To address these challenges, he proposed a government-managed portal for local and foreign investors to report issues, allowing for government review and a clear resolution timeline, ultimately boosting investor confidence and increasing investment.