|Published : 19 Apr 2017, 21:11:49|
Incentives for medium-sized enterprises
SMALL and medium-sized enterprises (SMEs) could have played a bigger role in Bangladesh's economy if the government gives them the incentives they deserve. Although the government has been patronising the big entrepreneurs and even some of the cottage industries, medium-sized enterprises hardly get due attention.
In FY 2016, 75 per cent of the term loans were given to the established entrepreneurs while the medium-sized enterprises got only 15 per cent and cottage industries 10 per cent. However, in FY 2009, medium-sized enterprises got 22 per cent of term loans which reduced sharply in recent times. Meanwhile, cottage industries received only 3.0 per cent of loans in FY 2009. In addition, the export-oriented aspects of medium-sized industries went down remarkably due to the US government's decision to withdraw GSP benefits for Bangladesh - evidently plastic and ceramic sectors have been affected. In absence of sufficient investments, further supplementary tax was alternately imposed and relaxed on 13 industrial products of medium-sized enterprises for the last five fiscal years that caused anomalies - import of seven products (like pipes and tubes) dropped, and another six products (including shoes) increased. The government should pay more attention to the needs of medium-sized enterprises.