Small traders, struggling with high interest rates, weak law enforcement and complex regulations amid global challenges, on Saturday called for easier VAT management and improved law and order to revive trade and investment.
The small traders of Dhanmondi, Mohammadpur, Shyamoli and Adabor areas expressed these concerns during an interactive view-exchanging meeting organized by the Dhaka Chamber of Commerce & Industry (DCCI).
The meeting, held at Tokyo Square Convention Centre, Mohammadpur, focused on issues such as the recent trade and investment scenario, law and order, income tax and VAT matters, high inflation, elevated interest rates, traffic congestion and related challenges.
The discussion was held with DCCI President Taskeen Ahmed in the chair.
In his opening remarks, the DCCI President said the current global economic conditions, compounded by domestic business challenges, the complexity of the tax and VAT system, crises in foreign exchange management, delays in export-import processes, and an overall weak law and order situation are adversely impacting the economy, particularly affecting SME entrepreneurs.
"In the current circumstances, there is no alternative to building a safe, stable, and predictable business environment," he said.
Taskeen mentioned that the Dhaka Chamber has already proposed, for the upcoming budget, the complete automation of revenue management, rationalization of tax rates, the introduction of a single-digit VAT rate, fixing a 1% VAT for the informal sector, and the development of a VAT return app — all aimed at improving the business environment and boosting government revenue collection.
He highlighted that easy access to credit, enhanced mobility through automation of export-import activities, and timely policy support from the government are crucial to maintaining the momentum of industrialization.
The DCCI President reiterated that businessmen are willing to pay taxes and VAT, but they do not want harassment.
Emphasizing the importance of the rule of law, he said it is vital to ensure effective enforcement to maintain active business operations at every level.
Mohammad Mostafizur Rahman, Additional Director (SME and Special Programs Department) of Bangladesh Bank, said the central bank recently issued a master circular on 17 March 2025 to increase credit flow to the SME sector.
To facilitate entrepreneurs, he informed that the term loan period has been extended from 5 to 7 years, recognizing that investors require at least two years to establish a factory.
He also shared that under various schemes, Bangladesh Bank has created a Tk 25,000 crore fund dedicated to SME entrepreneurs, offering loans at a maximum interest rate of 7%, with an even lower rate of 5% for women entrepreneurs and reduced rates for agro-entrepreneurs.
Besides, the Cash Reserve Ratio (CRR) has recently been reduced from 5.5% to 3% to increase credit flow to the private sector.
Md Milon Sheikh, Additional Commissioner of Customs, Excise and VAT Commissionerate, Dhaka (West), said about 80% of the government's total revenue target has been achieved through the National Board of Revenue (NBR), describing it as a very challenging task.
He noted that VAT collection growth in Mohammadpur and surrounding areas has increased by around 15–20% this year, and 98% of small businesses in the area have been brought under VAT registration within the last three months.
Regarding the proposal for a mobile app to facilitate online VAT registration, he welcomed the idea, saying the government would seriously consider it as it would reduce human contact and minimize harassment.
He urged SME entrepreneurs not to overlook VAT matters but rather to familiarize themselves with VAT laws for their own benefit, acknowledging that it remains a complex, mathematics-driven subject.
Md Alamgir Kabir, Additional Deputy Commissioner of Police (Tejgaon Zone), Dhaka Metropolitan Police (DMP), said that the law and order situation in the area has improved considerably over the past two months, with a notable decrease in the number of criminal cases.
He said on 27 March, around 63 extortionists were arrested during police block raids, and more recently, 71 miscreants were apprehended in a single day in the Mohammadpur area alone.
Besides, he mentioned, around 63 patrol teams are actively working across this large area under a robust policing strategy to ensure public safety.
He assured that the police are ready to extend all possible support to small traders during the upcoming Eid-ul-Adha celebrations.
Tania Sultana, Additional Deputy Commissioner of Police (Traffic, Tejgaon Zone), stressed the need for increasing public awareness and adherence to traffic rules to reduce congestion, emphasizing that traffic jams are not created by the police.
Bd-Pratidin English/ AM
