DHAKA, Feb 8, 2025 (BSS) - Representatives of the sectoral trade associations 
of old Dhaka have emphasized on simplification of the tax and VAT system for 
facilitating trade and commerce.
 
They also called upon the government for easing further traffic congestion, 
improving further the law and order situation especially to control the 
juvenile gangs, imposition of duty on tariff value of imported products, 
reduction of VAT rate, stopping the misuse of import under bond license 
facility, reducing government's expenditure and automation and simplification 
of process at the ports and introduction of package VAT system on essential 
commodities to contain inflation.
 
The Old Dhaka businessmen representing small and medium enterprises made the 
call at a view exchange meeting organised by Dhaka Chamber of Commerce and 
Industry (DCCI) held today at a community center in the city's Lalbagh area.

The DCCI held the view-exchange meeting with the Old Dhaka businessmen to 
identify and resolve the problems facing by the Old Dhaka traders, especially 
by the small entrepreneurs of that area.

The entrepreneurs said they have been facing various challenges in recent 
times due to unbearable traffic congestion, water logging, weak 
infrastructures, inadequate access to finance to SMEs, over law and order 
situation and Dollar price, delay in import and export procedures, high rate 
of interests on loans, increased VAT and tax rates and a bit complex revenue 
structure, said a DCCI press release. 

The business leaders of different specialized associations of Old Dhaka and 
representatives of several other business organizations participated in the 
meeting. 

Deputy Commissioner of Dhaka Metropolitan Police (Lalbagh Division) Md. 
Jashim Uddin, Director (Research), Chief Economist's Unit of Bangladesh Bank 
(BB) Dr. Md. Selim Al Mamun and Additional Commissioner Customs, Excise and 
VAT Commissionerate (South, Dhaka) of NBR Manash Kumar Barman were present on 
the occasion as special guests.

DCCI President Taskeen Ahmed, in his welcome speech, stressed the need for 
simplifying the tax and VAT system as well as simplifying the system 
according to the size, nature and capacity of the businesses, removing 
complexity and bottlenecks in the import-export procedures, and fixing a 
realistic VAT rate. 

He said despite being one of the ancient business hubs for trade and commerce 
for more than hundreds of years, the entrepreneurs of Old Dhaka have been 
facing various problems due to increasing traffic congestion, lack of 
infrastructures, tax and VAT issues. 

In order to solve these problems, joint initiative is needed both from the 
government and the private sector, he added. 

Taskeen also said that for a business-friendly environment, improving the law 
and order situation is a must.
 
Dr. Md. Selim Al Mamun said that during 2022 to 2024, the dollar rate 
depreciated by 35 percent in the local market and it caused instability in 
currency management, but the central bank is now working to restore stability 
of the exchange rate. 

Imports and exports have increased by 3.5 per cent and 10.9 per cent 
respectively in the last six months and remittances have reached US$16 
billion in the last seven months, he said. 

Mamun said the Bangladesh Bank has already formed a taskforce to bring back 
the siphoned off money. 

Manash Kumar Barman said the government has already taken initiative to 
automate the VAT system through VAT online registration process in a bid to 
easing the VAT payment return system and reduce harassment. 

He urged the entrepreneurs not to pay VAT to anyone without receipt.

Mentioning that there is a misconception about VAT, Manash clarified that for 
traders, VAT is always calculated based on product's value addition not on 
the manufactured price. 

Md. Jashim Uddin said that traffic police would be deployed at eight 
important spots to ease traffic congestion in Old Dhaka, but also urged the 
businessmen to come forward to recruit volunteers with them as well.
 
He informed that a number of roads in Old Dhaka would be made one-way soon to 
ease traffic congestion. 

Matiur Rahman, former president of DCCI, suggested that considering the 
economic situation of the country, it is necessary to reduce the LC margin 
irrespective of bank-client relationship.
 
Manwar Hossain, chairman of Anwar Group of Industries and former director of 
DCCI, stressed the need for widening the tax net by reducing the tax rate as 
well as rationalizing the tax rate.
 
Alhaj Abdus Salam, former senior vice-president of DCCI, said due to 
unbearable traffic congestion, the sales of old Dhaka traders are 
continuously decreasing, while they are also facing increasing losses due to 
high rate of tax and VAT and the complexity of revenue management. 
DCCI Vice-president Md. Salem Sulaiman and Members of the Board of Directors 
were present on the occasion. 

At the end of the event, DCCI President Taskeen Ahmed handed over DCCI's 
membership certificates to some 33 newly enrolled members of the DCCI.