Home ›› 02 Mar 2022 ›› Front
Modernisation of tariff structure is one of several measures needed to diversify and strengthen export competitiveness, experts have said.
They added that the country’s tariff structure is outdated which is a significant barrier to boosting exports and its diversification.
The opinion came at a webinar titled “Boosting Bangladesh’s Trade Competitiveness” arranged by the Policy Research Institute of Bangladesh (PRI) and World Bank on Tuesday.
In his address, Policy Research Institute Chairman Zaidi Sattar said over the past 50 years, Bangladesh has proved to the world that it can be a highly competitive trading nation.
“Trade, not aid, is now our motto,” said Zaidi.
The first phase of trade policy reforms is now over; diversifying export basket is the immediate challenge and it is a national imperative to launch the second phase of trade policy reforms since the LDC graduation will take place in 2026, he pointed out.
The researchers observed that modernisation of Bangladesh’s tariff regime could support export diversification and strengthen competitiveness during pre-and post-LDC graduation.
“Other measures include signing Free Trade Agreements, attracting Foreign Direct Investment and reducing trade costs by improving trade facilitation,” suggested Zaidi.
Commerce Minister Tipu Munshi was present at the virtual meeting as the chief guest.
The minister said pandemic caused a slowdown in the trade growth; the Bangladesh government prioritises boosting export and facilitating the tariff regime.
“We will modernise tariff structure for a short, medium and long-term period to increase export, and also enhance bilateral, regional and multilateral cooperation for trade facilitation,” according to Tipu.
The tariff structure needs to be changed to diversify and strengthen export competitiveness, said Yussuf Abdullah Harun, member of the Parliamentary Standing Committee under the Ministry of Commerce.
“We must withdraw local industry protection incentives phase by phase, but will provide tariff benefit,” he viewed.
The NBR should reduce tax for boosting Bangladesh’s trade competitiveness, according to Dhaka Chamber of Commerce and Industry president Rizwan Rahman.
Former president of Metropolitan Chamber of Commerce and Industry Sayed Nasim Manzur echoed the same.
He called for an equal treatment for all export sectors in terms of levying tax.
Citing RMG sector, Nasim said except the clothing industry, all other sectors pay higher tax.
The business leader advocated for small exporters’ easy access to low-cost export quality inputs – a practice that will help create more exporters, especially in non-traditional sectors.
Sadiq Ahmed, vice-chairman, and Abdur Razzaque, research director, PRI, Hoon Sahib Soh, practice manager, macroeconomics, trade and investment, and Nora Dihel and Csilla Lakatos, senior economists, World Bank, among others, were present at the webinar.
