Businesses on Monday underscored the urgent need for an improved law and order situation to support business operations in Bangladesh.

They also called for the government to prioritise measures to resolve the ongoing energy crisis, warning that its impact could severely affect the competitiveness of local manufacturers in the global market.

Participants further highlighted the necessity of better consultation with both local and foreign investors to strengthen the country’s trade and investment climate.

The discussions took place at a dialogue titled ‘Trade and Investment Growth: Business Consultation, Law & Order, and Energy Crisis Management Hold the Key,’ organised by the American Chamber of Commerce in Bangladesh (AmCham) at a city hotel.

Speaking as the chief guest at the dialogue, commerce adviser Sk Bashir Uddin urged businesses to concentrate on their current operations rather than be preoccupied with future uncertainties, which he warned could hinder economic growth.

He assured that the government is addressing critical issues such as law and order challenges and inflation, which are affecting the economy.

He also stressed the importance of public-private collaboration to foster growth and attract foreign investment.

The adviser highlighted the government’s efforts to create a more investor-friendly environment by simplifying business regulations and enhancing infrastructure.

In his remarks, Foreign Investors’ Chamber of Commerce and Industry (FICCI) president Zaved Akhtar commended several government initiatives, including the granting of Authorized Economic Operator (AEO) status to 10 businesses, calling it a significant boost to the economy.

However, he expressed concerns over the lack of consultation with businesses during the drafting of laws that impact the economy and criticised the complexity of the registration, certification, and other regulatory processes.

To address these issues, Unilever Bangladesh Chairman and Managing Director suggested the creation of a government-managed portal for local and foreign investors to report concerns, ensuring a clear resolution timeline and boosting investor confidence.

AmCham president Syed Ershad Ahmed emphasised the need to stabilise law and order, improve consultations within the business sector, and called for the National Board of Revenue (NBR) to establish separate wings for policy and implementation.

He also advocated for customs automation, the removal of manual signatures, and the introduction of double taxation relief.

Ershad Ahmed further suggested that the Export Promotion Bureau (EPB) should focus on exploring new export markets, research and development, and training, as trade shows are proving ineffective.

He also raised concerns about the insufficient facilitation of cargo transport between Dhaka ICD and Chattogram port, which is causing delays in raw material shipments.

AmCham president stressed the importance of policy stability to attract long-term investment and called for strengthening the Bangladesh Competition Commission and Intellectual Property Rights to foster a competitive business environment.

Representatives from the beverage industry, including Coca-Cola and PepsiCo, raised concerns over the high supplementary duty (SD), sugar tax, and minimum tax, calling for a reduction in the SD from 30 per cent to 25 per cent and the turnover tax from 3 per cent to 0.6 per cent.

They argued that such changes would help boost investment, create jobs, and stimulate business growth.

Meanwhile, representatives from the financial services industry requested the waiver of mandatory Income Tax Return slips for credit card issuance up to Tk 0.5 million, in line with the Income Tax Ordinance, to encourage greater financial inclusion.

Stakeholders from the textile and recycling industries emphasised the need to remove VAT on recycled cotton, urging that it be treated similarly to virgin cotton.

They argued that such a move would support sustainability, promote eco-friendly practices in the textile sector, and encourage the adoption of circular economy practices.

They also called for better stakeholder consultation before key decisions are made.

The tobacco industry, represented by British American Tobacco Bangladesh, voiced concerns about a recent sharp and sudden increase in SD, along with VAT and health surcharges, arguing that these exceed World Health Organisation (WHO) recommendations.

They warned that these increases could jeopardise the sustainability of the legal tobacco industry, which supports 4.4 million livelihoods and contributes over 11 per cent to government revenue.

Md Moinul Huq, Citi Country Officer for Bangladesh at Citibank, provided an insightful overview of the economy, while Syed Mohammad Kamal, former AmCham vice-president and country manager at MasterCard Singapore Holding Pte. Ltd, moderated the discussion.

AmCham treasurer Al-Mamun M Rashel, along with executive committee members Md Moinul Huq, Rashed Mujib Noman, Mirza Shajib Raihan, and the US Embassy Commercial Counselor John Fay, among others, attended the dialogue.