Small traders in Dhaka face major barriers to business growth: DCCI session highlights

Small traders from Dhanmondi, Mohammadpur, Shaymoli, and Adabar identified key obstacles to business and investment, including:

·         Weak law enforcement

·         High interest rates and limited access to finance

·         Complex VAT and tax systems

·         Harassment and lack of automation

·         Severe traffic congestion

These challenges are increasing business costs, lowering productivity, and discouraging new entrepreneurs. Urgent government intervention was called for to remove these barriers.

At a session organized by the Dhaka Chamber of Commerce and Industry (DCCI):

·         DCCI President Taskeen Ahmed emphasized the need for a safe, stable, and predictable business environment.

·         DCCI proposed full automation of revenue management, rationalized tax rates, a single-digit VAT, and a VAT return app to support businesses.

Government Responses:

·         Bangladesh Bank extended SME loan terms from 5 to 7 years and created a Tk 250 billion fund for SMEs, offering loans at 7% interest (5% for women entrepreneurs).

·         NBR highlighted a 15-20% VAT collection increase in Mohammadpur and surrounding areas, with 98% VAT registration among small businesses.

·         Dhaka Metropolitan Police reported recent arrests to improve law and order and promised continued support, especially ahead of Eid-ul-Adha.

The session underlined the need for easier access to credit, policy support, export-import automation, and community cooperation with police for a healthier business climate.