AmCham voices concern over law and order situation

A group of businessmen expressed concern about the debilitating law and order situation, saying it has been affecting enterprises, and sought remedies from the government.

The businessmen highlighted the issue at a dialogue hosted by the American Chamber of Commerce in Bangladesh (AmCham), titled "Trade and Investment Growth: Business Consultation, Law & Order, and Energy Crisis Management Hold the Key" at Sheraton Dhaka.

AmCham President Syed Ershad Ahmed emphasised the need to stabilise law and order and enhance business sector consultations. He also advocated for the National Board of Revenue (NBR) to establish separate wings for policy and implementation.

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

Ahmed stressed the importance of the Export Promotion Bureau (EPB) focusing on new export markets, research and development, and training as trade shows are proving ineffective.

He raised concerns about the insufficient facilitation of cargo transportation between the inland container depot in Dhaka 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.

During the dialogue, businessmen focused on the need to improve the law and order situation to support business operations. They also circled the importance of better consultation with local and foreign investors to enhance the trade and investment climate.

Beverage industry representatives from Coca-Cola and PepsiCo raised concerns over high supplementary duty (SD), sugar tax and minimum tax, urging a reduction in SD from 30 percent to 25 percent and turnover tax from 3 percent to 0.6 percent to boost investment, create jobs, and drive business growth.

A key point raised by representatives of the financial services industry was a request for waiver of mandatory income tax return slips for credit card issuance up to Tk 5 lakh, in alignment with the Income Tax Ordinance, to promote greater financial inclusion, according to an AmCham statement.

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

In the textile and recycling industry, stakeholders highlighted the need to remove the value-added tax on recycled cotton, treating it similarly to virgin cotton. This adjustment would foster sustainability, support eco-friendly textile units, and encourage the adoption of circular economy practices within the industry.

British American Tobacco Bangladesh highlighted that a recent sharp and abrupt SD increase, along with VAT and health surcharge, exceeds World Health Organization (WHO) recommendations, risking the sustainability of a legal industry supporting 4.4 million livelihoods and contributing over 11 percent to the government exchequer.

Commerce Adviser Sk Bashir Uddin highlighted the government's efforts to create a more favourable environment for both local and foreign investors by simplifying business regulations and improving infrastructure.

He urged businesses to focus on current operations rather than worrying about future uncertainties, as such concerns hamper economic growth.

He assured those present that the government is addressing key issues such as law and order challenges and inflation and stressed the importance of public-private collaboration to drive growth and attract foreign investments.

Zaved Akhtar, president of the Foreign Investors' Chamber of Commerce & Industry (Ficci) and managing director of Unilever Bangladesh, commended several government initiatives, particularly granting Authorised Economic Operator (AEO) status to 10 businesses.

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

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

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.