Liberal economies around the world consider small and cottage industries as their foundation, but when it comes to Bangladesh, the tables are turned. The global average corporate tax is around 23.8%, while it is 30% in Bangladesh. Files sometimes take years to get properly processed and for the circulars to get issued. Government officials even slap value added tax (VAT) on products abruptly without consulting the traders.
Bangladesh is a small country as it is, so the issuance of VAT in such a blanket manner means that the burden falls on traders, which in turn means that the burden generally gets inherited by the average consumer. This means that foreign companies that have a lot of money can absorb more of these taxes, while local companies lose ground in the market for failing to do so.
The administration needs to get its priorities straight.
Relevant authorities have to be trained and groomed in a way so that our local traders don't feel hassled. Our entire business environment has to be revamped keeping local traders in mind.
Bangladesh has a bright future ahead, but without proper plans, a lot of the boon of our future development might be siphoned overseas. If this happens, it will mean the death of our local businesses.
