Experts and stakeholders at a meeting highlighted simplification of processes in establishing business, citing that this will be vital for sustaining in the competition for Bangladesh during the post-graduation era.
The remarks came up at the 11th Trade and Investment Working Committee meeting of BUILD co-chaired by Md. Selim Uddin, Secretary, Ministry of Commerce and Kamran T. Rahman, President, Metropolitan Chamber of Commerce and Industry (MCCI).
The meeting took place on Sunday at the ministry of commerce to discuss business starting registration and licensing requirements and alternatives of cash incentives to be competitive at the post-graduation regime.
Referring to the proposal of signing FTA, Secretary, MOC, Co-chair of the committee, put emphasis on the initiative to finalize the Free Trade Agreement (FTA) with China, reinforcing the government's commitment to enhancing trade relations.
He emphasized the need to streamline RJSC services by reducing discretionary powers to create a more investment-friendly environment.
He also urged the prompt implementation of a five-year trade license issuance and renewal process by all relevant authorities, particularly the Union Parishad, to facilitate smoother business operations and support local enterprises.
Kanis Fatama, Senior Research Associate of BUILD, presented a policy paper on “Local Government Act-2009-Rationale of Trade License Issuance by the Authorities” on the occasion.
She underscored the hurdles faced by entrepreneurs in Bangladesh while obtaining Trade Licenses including lengthy and stringent procedures with additional cost.
The study reveals that the Local Government agencies have the authority to collect tax from all businesses under the Local Government Act-2009, (City Corporation, Municipality, & Union Porishod rather issuing Trade License for starting a business.
Anwar Pasha, Joint Secretary and Administrator of the Chittagong Chamber of Commerce & Industry, proposed the establishment of a Working Group that includes all relevant stakeholders, chaired by the Secretary of the Ministry of Commerce (MOC).
BUILD CEO Ferdaus Ara Begum shared insights from a study on the “Export Growth Targets & Supportive Policies for Sustenance at the Post-LDC Regime” where the prospects regarding the alternatives of the cash incentives were raised.
After LDC graduation, the trade policy of Bangladesh needs to be WTO compliant and thus giving direct cash incentives to the exporters will no longer be possible.
Kamran T. Rahman, President, MCCI endorsed the recommendations and called for a study to suggest policies for increasing the use of green and renewable energy(RE) by the industries, particularly exporters, to ensure that Bangladesh achieves 40% electricity consumption from RE by 2030 and reaches net zero by 2050.
