CMCCI writes to PM over rise in cost of doing business

CHITTAGONG, Feb 28: President of the Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI) Khalilur Rahman has expressed concern over the rise in the cost of doing business that impedes investment as well.

He expressed the concern in a letter sent to the Prime Minister on Tuesday seeking her intervention in solving the problem, a statement issued by the CMCCI said on Wednesday.

He said that the overall trade, business and investment atmosphere in the previous years was favourable and the economic activities ran smoothly following different steps taken by the government.

The interest rate on bank loans came down to the single digit level and resultantly the entrepreneurs and businesses could contribute to the national advancement.

But it is tough enough for the businesses to maintain that trend by meeting the harsh conditions attached to loans and opening of import LCs (Letter of Credit) due to liquidity crisis.

In the letter the CMCCI president listed the decline in the flow of bank loans, hike in interest rates and imposition of 15 per cent value added tax (VAT) on all port services by the Chittagong Port Authority as reasons for the increase in the cost of doing business.

The businesses become panicky when they recall the days when the interest rate on bank loans was 17-18 per cent. The high lending rate left many of the borrowers incapable of repaying the bank loans.

He said that the export sector, especially the readymade garment, is troubled by the excessive business cost, he said.

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