More policy support needed than financial ones

The Metropolitan Chamber of Commerce and Industry (MCCI) has sought policy support more than financial benefits from the government because that will increase the opportunity to do business easily.

MCCI President Md Saiful Islam made the remark during a views exchange meeting with journalists at the chamber at Motijheel on Saturday.

He said that businessmen are facing complications in renewing various types of industrial licences, including trade, import and export ones. He suggested renewing licences every three and five years instead of every year. If they get a licence for five years, the businessmen would like to pay the fee at an arithmetic rate.

He said the mayor of Dhaka South City Corporation has also agreed to this. However, as these licence fees are accompanied by VAT and AIT, MCCI has also made the same proposal to the National Board of Revenue.

Saiful also said that renewing licences every year does not go with the 21st century. “In these cases, there is corruption if there is human intervention. So, as much automation as possible is better. These licences can be outsourced to inspectors as other countries do without leaving a long time for inspection by regulatory bodies.”

In response to a question, he said that although the trade licence facility is available from the city corporations, there is erosion in the case of the union parishads. “For other licences in the industry, many are following the rules while many are not. Bribery is involved. Moreover, one has to prepare for the next year while renewing the licence for one year.”

In response to another question, he said, the Investment Development Authority has managed to ensure services at its one-stop service centre but it’s not able to insist other institutions. Companies are forced to contact different organisations again.

The MCCI president said that logistic support should be provided to facilitate businesses. “Now we have lost export competitiveness, for which the main reason is that the lead time is not remaining accurate. If logistics support and efficiency are increased by 17 per cent, exports can be increased by 7 per cent,” he added.

He said that Bangladesh’s graduation from LDC in 2026 will create a lot of opportunities and increase ratings, grading and image. But exports will not have the preferential treatment of 8-13 per cent duty. Interest rates on concessional loans will also be revised.

Saying these will create challenges in the future, Saiful said that 5 per cent benefits can be covered if efficiency is increased in the production sector. “And the remaining 8 per cent will depend on political stability and trade facilitation. Trade facilitation does not require money. Providing policy support with the right mindset is bigger than that.”

He added that emphasis on enabling circumstances for traders in diversified export sectors and policy support through the transfer of technical know-how is more essential.

He said, “The overall condition of trade is currently going through a difficult time. Because of that, the western world is moving away from single country dependency but this will create opportunities for us.”

MCCI has also proposed to exchange Indian currency with Bangladeshi Taka because along with the dollar, the Yuan is an IMF-recognised currency for international trade transactions and India’s rupee is not.

That will allow carrying out imports and exports with India in rupees, he said. “No decision has been made yet even though a proposal has been submitted to Bangladesh Bank in this regard.”

Habibullah N Karim, vice president of MCCI and managing director and CEO of Technohaven Company Ltd, and MCCI Director Adeeb Hossain were also present at Saturday’s meeting.