Nurturing local industry

30 May, 2021 12:00 AM printer

Bangladesh’s transformation into an export-based economy has been playing the most crucial role in graduation from LDC and in marching on to be a developed one. The government has been trying to facilitate business growth by taking different effective business-friendly strategies to speed up the transformation. The proposed policy to provide a number of facilities to local trade and businesses in the upcoming budget is another step of business-friendly attitudes. The decisions like VAT exemption for made-in-Bangladesh products, advance tax rates change and continuation of TAX exemption for women entrepreneurs and increasing advance income tax on imported products are expected to help flourish local industries to a great extent.

That the businessmen would face less complex procedures and spend less indirect cost in doing business to make the best of their capitals and flourish their industries is an expectation from a business perspective. Given that extending VAT waiver facilities for locally-produced electronics and electrical products and reducing advance tax by one percent from the current rate in the next budget will be a relief for the businessmen invested in those sectors and for the businessmen thinking of investing here. On the other hand, increasing advance income tax on imported luxury items and fragrance products will help grow these industries. Moreover, the decision to offer four agro-based sectors the tax exemption on revenue for the first ten years of the commercial production will generate new investments and create jobs in rural areas. If it happens so, it will boost domestic trade and investment.

We expect that all of these proposed decisions will be granted in the next budget and we hope to see a speedy implementation of them. However, a drastic change is needed in the mindset of the people who believe that all imported products are better than our local ones. We have to keep faith in our local producers, some of whom have already earned a good reputation around the world with their world-class products. The government has done its part, now the producers have to produce good-quality products, and the mass people have to prioritise local brands for smooth growth of local trade and businesses.