Businesses seek lower costs, easy LC process

Business leaders and entrepreneurs yesterday called for reducing the cost of doing business, simplifying regulatory procedures and improving law and order to create a more investment-friendly environment amid global trade uncertainties and domestic economic challenges.

The observations came at an exchange of views titled “Improving the Overall Local Business, Trade and Investment Environment,” organised by the Dhaka Chamber of Commerce and Industry (DCCI) at New Dhanmondi Convention Hall in the capital, said a press release.

Entrepreneurs from the Dhanmondi-Mohammadpur area said automation of trade licence and government services, easier access to finance, simplified procedures for opening letters of credit (LCs), and improved security were essential to sustaining business growth.

Speaking at the event, DCCI President Taskeen Ahmed said the country’s business community continued to make significant contributions to the economy despite facing administrative complexities, ambiguities in tax and VAT regulations, and law and order challenges.

He said energy shortages and electricity disruptions had increased transportation costs, while the mandatory closure of shopping malls and retail outlets by 7:00 pm had reduced sales and business turnover.

Taskeen, however, welcomed several business-friendly measures announced in the national budget, including treating tax deducted at source as advance tax, reducing source tax on industrial raw material imports, allocating Tk 5,000 crore for the CMSME sector and introducing a stable five-year tax framework.

He expressed concern that the government’s ambitious revenue collection target and growing reliance on bank borrowing to finance the budget deficit were crowding out private sector credit and discouraging investment.

Chief Revenue Officer of Dhaka South City Corporation (DSCC) Jonayed Kabir Sohag said the city corporation had adopted a zero-tolerance policy against harassment in obtaining trade licences and other civic services.