Page 18 - IBT December 2020

Switzerland
sets sights on

Bangladesh

Switzerland wants to strengthen
and widen its ties with
Bangladesh to explore "amazing
potential" together as Bangladesh
is set to celebrate its 50 years of
independence next year with
Vision 2041 in place. According to Swiss statistics, bilateral trade
between Bangladesh and Switzerland has more than tripled since 2010
and stood at around $850 million last year. Ambassador Chuard said
she really looks forward to having an "open and forward-looking
dialogue" with Bangladesh on issues that are very important for both
countries. The issues include sustainable development goals (SDGs),
migration, multilateralism, and human rights. Touching upon another
Tax policy hindering priority, the Swiss Ambassador said development cooperation with
Bangladesh remains one of the priorities.
SME sector

The country’s existing tax policy does not
support the small- and medium-sized
entrepreneurs to flourish; rather it holds
back their progress. Some of the policies are
regressive and interfering with business. The
tax policy is unthinkable and formulated in
such a manner that it does not help SME
entrepreneurs but rather hinders them with
the tax burden. For instance, an entrepreneur GOVT. FLOATS
has to pay 7 percent advance income tax,
whereas his/her gross profit margin is 5 INTERNATIONAL
percent. It is a burden for the SME sector and TENDER
does not help at all. When a manufacturer
wants to produce a part of its product by an
SME entrepreneur through subcontracting, Last week, the government floated an international tender to
he/she has to pay a 10 percent value-added purchase 50,000 tonnes of rice, it’s first in three years amid
tax, which increases the cost of doing dwindling supplies and a surge in prices of the staple grain. The
business. As a result, the manufacturer does prices of the grain have spiraled about 50 percent since March,
not want to provide work to the SME. The amid the coronavirus pandemic that has pushed local prices to
SME sector is the driver of growth for record highs due to panic buying. Subsequently, inflation hit a
countries like Bangladesh. To accelerate five-year high of 6.4 percent in October. Last month, food
economic growth and job creation, we have inflation climbed 84 basis points to 7.3 percent, largely due to the
to invest in SMEs.
increase in the price of rice.

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