Welcome to Business Outlook
Related Articles
Top business leaders yesterday urged the government to take steps to put an end to the harassment businesses face at the hands of VAT and tax officials and extend the loan moratorium period to help them recover from the coronavirus pandemic.
Some 40 to 50 per cent of businessmen will turn defaulters if the loan repayment period is not extended up to at least June 2024 as most of them are either running operations at losses or in the stage of recovery.
“The government should extend the loan repayment period for the survival of the businesses,” said Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
He was addressing a group of businessmen from around the country at a view-exchange meeting of the Council of Chamber Presidents 2022 at the federation office in Dhaka.
At the meeting, the top leaders were vocal against the harassment they face from taxmen.
Rizwan Rahman, president of the Dhaka Chamber of Commerce and Industry (DCCI), said the harassment of businessmen at the hands of VAT and tax officials had not stopped even 50 years after the country’s independence although the private sector contributes more than 82 per cent to the economy.
M R Masud, president of the Laxmipur Chamber of Commerce and Industry, said VAT and income tax officials were harassing businesses in the name of compliances.
He suggested the government introduce 2.5 per cent and 3 per cent VAT slabs.
Naser Ezaz Bijoy, president of the Foreign Investors’ Chamber of Commerce and Industry, said digitalisation of tax and VAT collection could put an end to the harassment.
Mojibur Rahman Belal, president of the Kishoreganj Chamber of Commerce and Industry, alleged that tax and VAT officials were harassing businessmen in various ways.
“Many small businessmen have turned into street vendors as they have lost their business because of Covid-19 and the harassment from the tax and VAT officials.”
Extortion is higher at the district level than in other cities, said Md Saiful Islam, president of the Metropolitan Chamber of Commerce and Industry.
Jashim said the FBCCI would hold eight seminars at the eight divisional cities soon with businessmen and the officials of the National Board of Revenue to raise awareness and end harassment.
At the meeting, the chamber and association leaders demanded immediate and equal disbursement of funds for small business units from the government-sponsored stimulus fund so that they can survive.
Almost all of the presidents of the district-level chambers and trade associations said although cottage, micro, small and medium enterprises have been the worst victim of the pandemic, most of them are yet to receive stimulus support.
Only 20 per cent out of Tk 22,000 crore stimulus unveiled for SMEs has been disbursed by banks, whereas the allocation for large units has already been disbursed.
“Banks do not want to lend to small units as they are not financially sound,” Jashim said.
A list of 2,200 small and medium business units was sent seeking stimulus loans from the Kishoreganj district. However, only eight businesses could obtain loans, said Belal of the Kishoreganj Chamber.
Local businesses have also called for introducing one-stop services for them as they need to obtain licences from 33 different government offices which is expensive and time-consuming.
Rizwan Rahman of the DCCI suggested separating cottage and micro enterprises (CMEs) from small and medium enterprises (SMEs) to support them appropriately.
The government should include opinions of the private sector while formulating the income tax law, the VAT law and the industrial policy, he said.
Anwar Ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries, said if the proposed gas price is implemented, the cost of production would go up and businesses would not be able to make any profit.
(TDS)
