Bangladeshi apparel exporters face costs up to six times higher than the official fees for essential permits and licence renewals, increasing their business expenses significantly, according to Center for Policy Dialogue (CPD).
The CPD study revealed that exporters paid 644% more than the official rate for boiler licences. Bond and fire licences also saw excessive fees, costing 261% and 114% more than the official rates, respectively.
"Although the cost is sometimes lower, payments for other licences such as factory establishment, trade, and export and import registration are still significantly above the official rates," said Dr Khondaker Golam Moazzem, CPD Research Director, in a seminar on Tuesday (14 May).
The seminar did not specify the official rates.
The event, organized jointly by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), CPD, and GIZ Bangladesh, focused on "Business related barriers and possible way out."
Dr. Moazzem highlighted the financial burden on businesses due to unofficial and unregulated fees, noting that such costs can range from Tk50,000-100,000 above the official fees for securing essential permits.
"These undocumented payments are seen as necessary to expedite the licensing process, creating ethical and compliance challenges," he added.
He also pointed out that corruption is a major concern across all business sectors, with significant percentages of large, medium-sized, and small enterprises affected.
Delays in obtaining and renewing licences, often exceeding the official time frames, disrupt business operations and diminish investor confidence.
Dr Moazzem mentioned that a trade licence renewal, officially a seven-day process, typically takes 10 to 15 days due to inefficiencies and additional fees.
To mitigate these issues, Dr Moazzem recommended digitisation to make the process more transparent and reduce corruption.
The seminar was attended by Ahsanul Islam Titu, State Minister for Commerce, Lokman Hossain Mia, Executive Chairman of the Investment Development Authority (BIDA), and chaired by FBCCI President Mahbubul Alam.
