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Small traders face financial loss due to licence problems: NASCIB


Published : 31 Jul 2022 07:59 PM

Business of small traders was closed for two years due to Corona.  Due to the closure of shops for such a long time, the traders faced extreme financial losses.  Big traders got various support packages but small traders remained deprived.  Again, the government's new steps are putting small marginal traders at risk.  

In the draft prepared to amend the Smoking and Tobacco Control Act, it is proposed to ban the sale of tobacco and tobacco products without a license from local government institutions.  A fine of Tk 50,000 has been 

proposed for violation of the directive and a penalty of double the rate thereafter.

The National Association of Small and Cottage Industries of Bangladesh (NASCIB) Chattogram Metropolitan Branch has expressed concern over these proposals and steps.

This concern was expressed in a press conference organized by NASCIB Chattogram Metropolitan Branch at S Rahman Hall of Chattogram Press Club on Sunday.

President of NASCIB Chattogram Metropolitan Branch, ASM Abdul Gaffar Meyazi said that most of the small businessmen do not have any specific place to run their shops.  The place has to be changed every few days.  Again many sellers are floating.  It is impractical for them to get a license with a holding number. There are about 15 lakh low-income retailers in Bangladesh, most of whom are floating shops in remote areas.  As a result it will not be possible to implement this section.

He said that small marginal traders cannot be chased away by imposing any unreasonable instructions.  Logical instructions should be given.  Does a person who sells kerosene at retail level have to obtain a license from the Department of Explosives?  Does a person who sells saline in the store have to get a drug administration license?  So why the issue of a separate license for the sale of retail cigarettes?  Mandatory licensing would cripple the businesses of low-income retailers, adversely affect economic activity and negatively impact daily livelihoods.  Besides, it will create the possibility of misuse of law and harassment in the field.

He said that the draft law has mentioned a penalty of Tk 50 thousand.  This amount of income is not even for a few months of a small trader.  If such a provision is made, the business will have to be closed and the family will have to go without food.  Small industry has already suffered the biggest blow due to Corona.  Many small entrepreneurs could not return to business.  This rate is about 10 percent.  There are very few opportunities for small traders to do business with a license.

Abdul Gaffar Meyazi said that the tax burden has been heavily imposed on small and medium traders.  The tax and VAT net has been increased in such a way that the small businessmen of the country's divisional, district and upazila cities are also coming under the tax.  At the same time, the amount and scope of various types of taxes have been increased in the process of collecting various documents for business.  

If you want to do business, first of all you have to get a trade license.  It has to be renewed every year.  Earlier, for Dhaka and Chattogram City Corporation areas, Tk 500 tax was required to be paid at source against the fixed fee at the time of renewal of trade license.  It has been increased to Tk 3 thousand from the proposed financial year 2019-20.  In this way, the small traders at the marginal level have become disoriented under the burden of various taxes.

NASCIB District President Nurul Azam Khan, Vice President Engineer Salim, Director Jahangir Alam, MA Hossain were present in the press conference.