Dhaka Chamber of Commerce & Industry (DCCI) emphasized a smooth LDC graduation process, with the improvement of the country’s competitiveness, rational elimination of non-tariff barriers, and formulating a national way forward with strategies for local and export market competitiveness.

The DCCI said it in a press conference on the contemporary economic situation and to share their plan of action for the year 2022 held on Sunday.

DCCI President Rizwan Rahman presented the keynote paper on the contemporary economy. DCCI Senior Vice President Arman Haque and Vice President Monowar Hossain were also present on the occasion.

Regarding corporate tax rate he said that DCCI still advocates for reducing Corporate Tax rate to  5 percent and 7.5 percent respectively in 2022-23 and 2023-24 and it should be at par with the regional average tax rate.

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DCCI President said that this year the Chamber will prioritize the CMSME sector, including export diversification, blue economy, economic diplomacy, infrastructure, private investment & FDI, export diversification, skills development, digital engagement, taxation, and LDC graduation.

He said the world is still suffering from the Covid outbreak, therefore strengthening CMSME sector should get priority, especially get priority, especially in terms of easy access to finance. To cope with the growing demand for a future skilled workforce, he urged for investing more in research and development, re-Skilling, and upskilling.

Terming blue economy as an emerging sector for Bangladesh he said Bangladesh’s ocean economy stands for 3.1 percent of the country’s overall GDP. Shipbuilding, tourism, sustainable fishing, gas, and mineral explorations are largely unutilized.

He, however urged creating a national blue economy development and implementation roadmap. To have a strong position in the economic diplomacy he suggested to develop negotiation skills on international trade, WTO matters and relevant International laws for win-win FTAs and PTAs.

“Our major export destinations are Europe and America covering almost 67 percent of our total export whereas Africa and Middle East are untapped. But after the LDC graduation export will face a challenge and for that, we have to formulate an export diversification strategy engaging all stakeholders,” he added.

Also read: Bangladesh economy suffered due to Covid pandemic: DCCI Webinar

Tariff rationalization, reduction of non-tariff barriers in cross-border trade, and minimizing anti-export bias is also important in this regard, he said. In 2020-21 private investment came down to 21.25 percent of GDP, but in 2021 FDI was USD 2.51 billion.

In order to revive private investment and FDI, he suggested for rationalizing the corporate tax structure, equipping economic zones and readiness, a national roadmap. He also stressed for automation of overall taxation, VAT, audit, arrears management, investigation and inquiry, appeal, revenue account management, taxpayer account management, and revenue information management.

He said a predictable and compliant tax culture would increase tax net and foreign investment and underscored the importance of a simplified VAT refund process.