DHAKA, April 29, 2026 (BSS) - Business leaders have urged the government to introduce urgent fiscal and policy support measures to help safeguard small-scale industries facing mounting operational and financial pressures. The call was made today at the 46th meeting of the consultative committee between the National Board of Revenue (NBR) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), held at a hotel in the city. Finance Minister Amir Khosru Mahmud Chowdhury attended the meeting as the chief guest while Commerce Minister Khandakar Abdul Muktadir was present as the special guest. National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan presided over the meeting while FBCCI Administrator Md. Abdur Rahim Khan moderated it. Speaking at the event, Obaidur Rahman, President of the Bangladesh Aluminum Manufacturers Association, warned that many small manufacturing units are on the verge of closure due to rising costs and economic stress. He made an emotional appeal to policymakers, saying that the survival of the sector now depends on immediate intervention. He stressed that without timely support, small industries-considered a key driver of employment and local production-would struggle to sustain operations in the coming fiscal year. Participants at the meeting also recommended reducing the VAT burden on small industries to ease production costs and improve cash flow.  At the same time, they suggested expanding the direct tax base by strengthening income tax collection at district and upazila levels, which could help offset revenue losses from VAT adjustments. They emphasised that ensuring the sustainability of small industries is critical for maintaining industrial growth and employment generation.  They noted that without targeted reforms and immediate fiscal relief, many small enterprises could face shutdown amid ongoing economic challenges. Bangladesh Restaurant Owners' Association Secretary General Imran Hassain said that the VAT rate should be reduced further, and taxes should be collected in a unified manner. Raising allegations of bureaucratic complications and harassment, he mentioned that administrative pressure and field-level harassment have made it increasingly difficult to run businesses.  "On one hand, there is pressure to increase VAT; on the other, there are irregular enforcement drives. If this continues, we will have no option but to shut down our businesses," he said. The business leaders from various sectors have also called for the introduction of single-digit lending rates and targeted policy support in the upcoming national budget to sustain economic growth and accelerate industrial expansion. They proposed a 10 percent interest rate cap for general industries and urged the government to ensure single-digit rates for domestic industries, arguing that affordable financing is essential for maintaining investment momentum. Representatives of women entrepreneurs emphasized the need for a dedicated fund and specific budgetary allocations to support female-led businesses, particularly in rural and semi-urban areas.  They called for low-interest loans with tenures ranging from five to ten years, along with a reduction in fees related to VAT registration, trade licences, and company registration.  They also urged the government to introduce VAT exemptions on services and processed goods produced by women entrepreneurs and to withdraw the existing Tax Deducted at Source (TDS) for small and medium enterprises (SMEs), citing financial strain and procedural complexities. In the automotive and engineering sector, stakeholders called for a reduction in the import duty on used auto parts from 25 percent to 10 percent.  They also stressed the need for designated zones for automobile workshops in Dhaka, as many businesses are currently facing eviction due to the lack of proper zoning. Meanwhile, representatives from the shipping and logistics sector expressed concern over a 46 percent tariff hike at Chattogram Port, stating that rising costs have already been exacerbated by the depreciation of the taka against the US dollar.  They recommended providing incentives to the local shipping industry, which could potentially save up to 20 percent in foreign currency currently spent on freight services. Business leaders from the northern region called for a region-specific trade policy and urged a review of the 1 percent tax on rice bran oil.  They also stressed the importance of expanding the tax net to upazila and union levels, rather than increasing pressure on existing taxpayers.  They pointed out that the NBR continues to face a shortage of manpower at the district level, which hampers efficient tax collection and administration. In addition, stakeholders proposed extending the budget consultation period to two months, instead of the current one-month timeframe, suggesting that discussions begin earlier in the fiscal year to allow for more comprehensive analysis and stakeholder engagement.  They also called for special budgetary allocations to revive sick and closed industries in order to safeguard employment, and urged the government to take measures to stabilize the Islamic banking sector, which currently serves more than 30 million clients across the country.