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29 March 2024


Business Insider Bangladesh

MCCI reiterates call for issuing trade licence for 5 years

BI Report || BusinessInsider

Published: 20:17, 24 September 2022   Update: 21:31, 24 September 2022
MCCI reiterates call for issuing trade licence for 5 years

MCCI logo

Metropolitan Chamber of Commerce and Industry (MCCI) President Md Saiful Islam on Saturday suggested that the government introduce trade licences with a five-year duration so that the businesses do not need to renew their licences every year as it consumes money and time.

“Renewing trade licence in Union Parishad areas is tougher than the process under the city corporation areas,” he said while addressing a networking luncheon for the business journalists at the MCCI office in Dhaka, reports Bangladesh Sangbad Sangstha.

Issuing the long-term trade licences will eventually ease the doing of business which is very much needed in time of current economic situation, opined the MCCI president.

In case of five-year-long environmental certification, the authorities will inspect the companies periodically and if they find any irregularity they may cancel their licences, he opined.

Different studies suggest that 17 percent efficiency in logistics will increase by 7 percent trade which is essential in the erosion of preferential trade with LDC graduation.

The MCCI, a leading business chamber, also expressed a different opinion with a claim of the National Board of Revenue (NBR) relating to the release of goods from the Chattogram Port.

Rather, if the release of shipping documents from the port can be done through online, it would be possible to save time, said Islam.

So, it is not right that the businessmen take more time to release goods from the port as more than 99 percent of trade is genuine, Islam said when he was replying to queries from the journalists.

Recently, a study by the NBR said it takes 11 days for releasing the imported goods from the Chattogram Port where businessmen eat up one-third time of 11 days and finally delay the release of goods from the port.

Islam, however, citing a study by the World Bank, said if the proper trade facilitation is given to the businessmen, some 14.3 percent of trade will increase in Bangladesh which will eventually commensurate 8 percent to 13 percent trade because of erosion of preferential trade after the country’s LDC graduation in 2026.

He welcomed the initiative of a central currency swap with the Chinese Yuan and the process of trade with the Indian Rupee with India as these steps will reduce pressure on the reserve of the US dollar with the Bangladesh Bank.

It is possible to save at least $4.0 billion if ne-fourth of trade with India can be proceeded with the exchange of taka and Indian rupees, as Bangladesh imported goods worth around $10 billion from India, the second largest import destination after China, last fiscal year, Islam said.

The MCCI president also said the long-term import restriction may create challenges for business and employment although the government can save a handsome amount of dollars in this crisis moment.

For instance, a member of the MCCI has faced a lot of trouble in the import of capital machinery recently because of having control over the import of luxury items.

In this regard, Islam said currently different exchange rate between importers and exporters is 10 percent or more than Tk 10 per dollar and taka which is discriminatory.

For instance, the importers have to pay Tk110 per dollar to the banks and the exporters receive Tk 98 and Tk 99 per dollar.

The MCCI president also said employment generation will not be a big challenge as the domestic economy has been performing strongly even during the crisis time.

Every year some 2.5 million new job seekers enter the local job markets and this year too the same number of job seekers will come to the job markets and they will get the jobs.

However, the robustness of the economy is mainly dependent on three important factors including a peaceful domestic political environment, and the geo-political situation as the Russia-Ukraine war is continuing alongside climate change.

Habibullah N. Karim, vice-president and Adeeb Hossain Khan, director of the MCCI also spoke.

 

Nagad
Monetary Policy Stance
Budget 2020-21
Walton