Bangladesh’s top trade body described the new monetary policy statement as “pro-private sector.”
“However, it lacks policy guideline on recovering non-performing loans and controlling money laundering,” said FBCCI President Abdul Matlub Ahmad at a press conference in Dhaka yesterday.
He said the Bangladesh Bank kept 16.50% private sector credit growth target unchanged.
“But it should be 17% as the import of capital machinery increased, which indicated that the investment in coming months will go up.”
“New monetary policy statement didn’t disclose any specific policy measures for the development of small and medium enterprises (SMEs), which is very important for the development of the country,” said Matlub Ahmad.
FBCCI also urged the government to set 7% value-added tax instead of 15% for retail business.
It also made a call to Bangladesh Bank to take steps to reduce non-performing loans (NPLs) and curb money laundering to boost investment in the country.
Federation of Bangladesh Chambers of Commerce and Industry President Abdul Matlub Ahmed came up with the call at a press conference yesterday which was held to give its reaction to the new Monetary Policy Statement.
“We want implementation of the VAT online system under the new law but we demand VAT rate be set at 7% from July this year,” said Matlub Ahmed.
“Reduction of VAT rate will encourage traders pay VAT, helping the NBR collect more revenue,” he said.
Talking about the country’s investment situation, Matlub Ahmad said the non-performing loans in banking sector have been rising steadily. “Immediate steps are needed to solve the problem. Otherwise it will not be possible to speed up investment in the country.”
FBCCI First Vice-President Md Shafiul Islam Mohiuddin said they had met NBR 10 times with seven-point demands. He said the NBT always assured them of taking business-friendly decisions.
He said Finance Minister AMA Muhith yesterday also assured of solving problems “as early as possible” to build up a meaningful and effective partnership between government bodies and businesses, Mohiuddin said.