DCCI for lower cost of doing business to spur investment

Bangladesh's business leaders have urged the government to slash the cost of doing business, simplify regulations and restore investor confidence, warning that rising operating costs, policy bottlenecks and persistent economic uncertainties are weighing heavily on private investment and industrial expansion.

The call came at an exchange of views titled "Improving the Overall Local Business, Trade and Investment Environment," organised by the Dhaka Chamber of Commerce and Industry (DCCI) at the New Dhanmondi Convention Hall in the capital on Saturday.

DCCI Senior Vice-President Razeev H. Chowdhury, Vice-President Md Salem Sulaiman, members of the chamber's board of directors and representatives from around 100 business organisations also attended the event.

Entrepreneurs said creating a truly investment-friendly climate would require faster automation of trade licences and government services, easier access to finance, simplified procedures for opening letters of credit (LCs), stronger law and order, and lower compliance costs amid growing global trade uncertainty and domestic economic challenges.

Speaking at the event, DCCI President Taskeen Ahmed said the private sector continued to drive Bangladesh's economic growth despite grappling with administrative complexities, inconsistent tax and VAT regulations and a deteriorating law and order situation.

He said recurring energy shortages and electricity disruptions had driven up production and transport costs, while the mandatory closure of shopping malls and retail outlets by 7:00 pm had significantly reduced sales and business turnover.

Taskeen, however, welcomed several business-friendly measures in the national budget, including treating tax deducted at source as advance tax, reducing source tax on imports of industrial raw materials, allocating Tk 5,000 crore for the CMSME sector and introducing a stable five-year tax framework.

He cautioned that the government's ambitious revenue collection target and growing dependence on bank borrowing to finance the budget deficit were squeezing private sector credit, discouraging fresh investment and slowing business expansion.

Chief Revenue Officer of Dhaka South City Corporation (DSCC) Jonayed Kabir Sohag said the city corporation had adopted a zero-tolerance policy against harassment in the issuance of trade licences and other civic services. He added that DSCC was planning to organise a "Trade Licence Renewal Week" at the DCCI to simplify licence renewal for businesses.

Deputy Commissioner (Crime) of Dhaka Metropolitan Police Md Tareq Zubair said police had intensified anti-extortion drives under a zero-tolerance policy to ensure a safer business environment. He also disclosed plans to expand AI-powered traffic management across Dhaka under a proposed "Smart Policing, Smart City" initiative.

Additional Commissioner of Customs, Excise and VAT Commission, Dhaka (West), Nirjhar Ahmed said allowing businesses to submit VAT returns every three months would improve cash flow management and ease operational pressures. She also stressed the need to adopt advanced technologies to enhance the competitiveness of local industries.

Second Secretary (Tax Policy) at the National Board of Revenue (NBR) Nusrat Farzana said the Finance Act 2026 introduced a series of reforms aimed at simplifying business operations while balancing revenue mobilisation with tax incentives. She added that tax exemptions for the renewable energy sector had been extended until 2035 to encourage greater private investment.

Bangladesh Bank Director Mahmudun Nabi said persistent US dollar shortages and pressure on foreign exchange reserves had prolonged LC opening and settlement, while mounting non-performing loans (NPLs) continued to keep lending rates high. He suggested greater collaboration between the public and private sectors to engage international shipping companies and reduce import logistics costs.

During the discussion, business leaders urged the government to make it easier to import machinery for the optical industry, reduce taxes on signing money in the real estate sector and introduce clear policies for freelance promoters and digital marketing businesses. They also called for faster container handling and customs clearance to reduce business costs.

They further sought simpler letter of credit (LC) procedures for new entrepreneurs, easier access to incentives for women entrepreneurs, quicker trade licence services and an extension of trade licence validity from the current one year to five years to reduce administrative hassles and support business growth.

The programme concluded with the DCCI awarding membership certificates to representatives of 39 newly enrolled business establishments.