President of the Dhaka Chamber of Commerce and Industry (DCCI) Taskeen Ahmed emphasized the urgent need for structural reforms to tackle the challenges of Bangladesh’s transition from a Least Developed Country (LDC) status.
During a courtesy meeting with Commerce Adviser Sheikh Bashir Uddin at the secretariat, Ahmed stressed that comprehensive modernization of trade and investment frameworks, including import-export policies, revenue structures, logistics policies, and financial management, is critical for the country’s post-LDC era, reads a press release.
Ahmed pointed out that disruptions such as the COVID-19 pandemic, the Russia-Ukraine war, and domestic political instability in 2024 have hampered Bangladesh's preparations for LDC graduation. He suggested deferring the graduation process to allow for better preparation, citing the loss of preferential trade benefits in international markets as a major concern. He also called for the formulation of a "Smooth Transition Strategy" through public-private dialogue to ensure a seamless transition and urged the government to support the private sector in addressing potential challenges.
The DCCI President expressed concern over the National Board of Revenue's (NBR) recent proposals to increase VAT, supplementary duties, and excise taxes on over 100 products. He warned that such measures could exacerbate inflation, raise business costs, and deter local and foreign investments, especially ahead of Ramadan. Ahmed urged the government to reconsider these hikes and focus on strengthening supply chain monitoring to control inflation and ensure the availability of essential goods during the holy month.
In response, Commerce Adviser Sheikh Bashir Uddin acknowledged the challenges posed by recent disruptions, including a student-led uprising, floods, and supply chain interruptions, but assured that the situation is improving. He expressed optimism that essential commodity prices would stabilize by Ramadan, though the government is closely monitoring rising rice prices.
The adviser underscored the importance of expanding the tax net to sustain economic development and called for collaborative efforts to reform trade and investment policies. Stressing the need for policy consistency to attract both local and foreign investors, he highlighted the role of a strengthened private sector in navigating future challenges.
DCCI Senior Vice President Razeev H. Chowdhury and Vice President Md. Salem Sulaiman also attended the meeting.
