Get prepared, state can’t give protection for long
Since many of the Bangladeshi businesses are competing successfully in the global markets, they should learn to do the same in the local market as state protection cannot be provided for long in an ever-changing world, according to Salman F Rahman, the prime minister's private industry and investment adviser.
"Customs duty is imposed for the protection of local companies. Our local companies are now competing with international companies to grab markets abroad so why do complaints still exist over the absence of a level playing field," he said.
There were once problems such as a lack of electricity and infrastructural facilities but now, the issue with electricity is resolved while infrastructural insufficiencies have also been reduced.
"So, accusations are no longer acceptable," Rahman added.
The private industry and investment adviser went on to say that the pandemic has taught a lesson on the necessity of technology for the fourth industrial revolution, for which the government was planning to include coding in the general education curriculum.
Moreover, the country needs to widen the tax net to meet its increasing expenditures and should not highly depend on customs duty but raise collection of other forms of tax, such as value added tax and income tax, he said.
Rahman was addressing as chief guest a virtual seminar on 'Covid-19 pandemic: impact on investment in Bangladesh and the way forward', organised by Bangladesh Publicly Listed Companies (BAPLC) in observance of World Investors Week 2020.
Calling for increasing financial literacy this year, the event is being observed by the Bangladesh Securities and Exchange Commission (BSEC) along with market intermediaries in tune with the International Organisation of Securities Commission (IOSCO).
Despite being hit hard by the pandemic induced lockdown, the country's private sector has already recovered by around 60 to 70 per cent, said Azam J Chowdhury, president of the BAPLC.
Within a few months, the sector will completely recover and resume operations in full swing because the government's stimulus packages have worked well, he said.
However, there are some shortcomings in clarity in the process to avail the funds, for which many companies could not take advantage of the packages.
"We need a lot of foreign direct investment in the coming days so all barriers to it should be removed," Chowdhury added.
The country is passing through a very difficult test centring Covid-19, which is also imparting a lot of lessons, said BSEC Chairman Prof Shibli Rubayat Ul Islam.
Bangladesh will need to increase dependency on stock market-based financing rather than on bank-based loans to finance the investment needs of its entrepreneurs in the coming days.
"So, we aim to transform the market into reaching a developed phase such that it can deliver financing needs," he added.
Shiekh Fazle Fahim, president of the Federation of Bangladesh Chambers of Commerce and Industry, recommend suspending collection of advance tax from entrepreneurs for at least two years.
Considering the Covid-19's detrimental impacts, this will provide relief to investors, he added.
Md Sirazul Islam, chairman of Bangladesh Investment Development Authority, suggested that exports should be diversified while the local supply chain-based industries should be improved as well.
Meanwhile, Tanzeem Chowdhury, director of East Coast Group, gave a PowerPoint presentation regarding the issue.
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