Small and Medium Enterprises (SMEs) across Bangladesh are facing rising financial and operational pressures, prompting business leaders to call for a broad set of fiscal, tax and policy reforms to ensure their survival and continued contribution to employment and production.
The appeal came on Wednesday at the 46th meeting of the consultative committee between the National Board of Revenue (NBR) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), held at a hotel in Dhaka.
The meeting was attended by Finance Minister Amir Khasru Mahmud Chowdhury as the chief guest and Commerce Minister Khandaker Abdul Muktadir as the special guest.
NBR Chairman Md Abdur Rahman Khan presided over the session, while FBCCI Administrator Md Abdur Rahim Khan moderated it.
Speakers from multiple sectors highlighted that small manufacturing units are increasingly under strain due to rising costs, regulatory pressure, and liquidity challenges.
Bangladesh Aluminum Manufacturers Association President Obaidur Rahman warned that several units are on the verge of closure unless immediate support measures are introduced.
He urged policymakers to act quickly, stressing that small industries play a crucial role in job creation and domestic production and may struggle to survive without timely intervention.
Business representatives collectively recommended easing the VAT burden on small enterprises to reduce production costs and improve cash flow.
They also suggested expanding the income tax base at district and upazila levels to balance revenue adjustments.
Participants warned that without targeted reforms, many small and medium enterprises could be forced to shut down, impacting overall industrial growth and employment generation.
Bangladesh Restaurant Owners’ Association Secretary General Imran Hassain raised concerns over rising VAT pressure and enforcement challenges, alleging that irregular field-level actions are creating additional operational difficulties for businesses.
He cautioned that continued pressure could force closures in the sector.
Across sectors, business leaders also pushed for a reduction in lending rates, proposing single-digit interest for domestic industries and a 10 percent cap for general industries to support investment and expansion.
Women entrepreneurs called for a dedicated fund, low-interest long-term loans, and reduced administrative fees, along with VAT exemptions and withdrawal of Tax Deducted at Source (TDS) for SMEs to ease financial strain.
Automotive and engineering stakeholders demanded reduced import duties on used auto parts and designated workshop zones in Dhaka to address relocation pressures.
Shipping and logistics representatives raised concern over increased port tariffs and currency depreciation, suggesting incentives for local shipping firms to reduce foreign exchange expenditure on freight.
Business leaders from northern Bangladesh urged a region-specific trade policy, tax rationalisation on rice bran oil, and expansion of the tax net to lower administrative units to improve efficiency.
They also recommended extending the budget consultation period to allow more in-depth stakeholder engagement and called for targeted support to revive sick and closed industries.
Additionally, concerns were raised over challenges in the Islamic banking sector, which serves more than 3 crore clients, with calls for stabilisation measures to ensure financial sector resilience.
