Staff Reporter :
Stakeholders of the Micro, Small & Medium Enterprises (MSME) sector have urged for speedy disbursement of stimulus along with allowing them to pay VAT, tax and all utility bills through equal installments in next six months for the sustainability of their businesses.
They also said 13 million MSMEs are contributing 25 percent of GDP, 35.5 percent of total employment and the export earnings range from the sector is 75- 80 percent.
But the banks are reluctant to disburse loan from the stimulus package to the MSMEs, although the sector is hit hard by Covid-19 pandemic, they said.
They further said the sector is now facing challenges in access to finance, market linkage, product standardization, modern technology, access to training and lack of skilled manpower
Speaking at Zoom meeting on Wednesday, Shams Mahmud, President of Dhaka Chamber of Commerce and Industry (DCCI), said that the small entrepreneurs still want to pay VAT and tax but they want facility to pay in installments to cover up loses.
He also informed that DCCI is planning to sit with the banks and will try to figure out what are the procedures SMEs need to comply with for getting bank loans from the stimulus.
“We want to come out of this situation. We need SME linked FDI policies to make CMSME sector grow further,” he added.
Hossain Khaled, Managing Director of Anwar Group of Industries, said, “Our sales come down to 35 percent due to the ongoing pandemic which would have many negative ripple effects. So, unbanked SMEs may not be benefited by the stimulus.”
He underscored the need of easing complex procedures of import as the manufacturing sector is by and large import based.
Bangladesh Bank can introduce a re-financing scheme of 1.5 percent to 2 percent interest rate for the SME sector, he added.
Md Abdur Razzaque, President of the Bangladesh Engineering Industry Owners’ Association, requested the government for deferral of VAT and electricity bill payment for a year.
He also urges to waive VAT on locally made capital machineries and repairing businesses along with fiscal and non-fiscal assistance for SMEs.
Md. Alauddin Malik, President of Local Garments Manufacturers Association, Hossain A Sikder, President of Dhaka Shilpa Malik Samity, Md Abdur Razzaque, President of Bangladesh Engineering Industry Owners’ Association, Mohammad Jalal Uddin, President of Bangladesh Bread Biscuit and Confectionery Makers Association and Mohammad Bashiruddin, DCCI Vice President of DCCI, among others, spoke at the event.
Stakeholders of the Micro, Small & Medium Enterprises (MSME) sector have urged for speedy disbursement of stimulus along with allowing them to pay VAT, tax and all utility bills through equal installments in next six months for the sustainability of their businesses.
They also said 13 million MSMEs are contributing 25 percent of GDP, 35.5 percent of total employment and the export earnings range from the sector is 75- 80 percent.
But the banks are reluctant to disburse loan from the stimulus package to the MSMEs, although the sector is hit hard by Covid-19 pandemic, they said.
They further said the sector is now facing challenges in access to finance, market linkage, product standardization, modern technology, access to training and lack of skilled manpower
Speaking at Zoom meeting on Wednesday, Shams Mahmud, President of Dhaka Chamber of Commerce and Industry (DCCI), said that the small entrepreneurs still want to pay VAT and tax but they want facility to pay in installments to cover up loses.
He also informed that DCCI is planning to sit with the banks and will try to figure out what are the procedures SMEs need to comply with for getting bank loans from the stimulus.
“We want to come out of this situation. We need SME linked FDI policies to make CMSME sector grow further,” he added.
Hossain Khaled, Managing Director of Anwar Group of Industries, said, “Our sales come down to 35 percent due to the ongoing pandemic which would have many negative ripple effects. So, unbanked SMEs may not be benefited by the stimulus.”
He underscored the need of easing complex procedures of import as the manufacturing sector is by and large import based.
Bangladesh Bank can introduce a re-financing scheme of 1.5 percent to 2 percent interest rate for the SME sector, he added.
Md Abdur Razzaque, President of the Bangladesh Engineering Industry Owners’ Association, requested the government for deferral of VAT and electricity bill payment for a year.
He also urges to waive VAT on locally made capital machineries and repairing businesses along with fiscal and non-fiscal assistance for SMEs.
Md. Alauddin Malik, President of Local Garments Manufacturers Association, Hossain A Sikder, President of Dhaka Shilpa Malik Samity, Md Abdur Razzaque, President of Bangladesh Engineering Industry Owners’ Association, Mohammad Jalal Uddin, President of Bangladesh Bread Biscuit and Confectionery Makers Association and Mohammad Bashiruddin, DCCI Vice President of DCCI, among others, spoke at the event.
