Traffic congestion, waterlogging, and weak infrastructure are taking a huge toll on small businesses in Old Dhaka, said Abdus Salam, former senior vice-president of the Dhaka Chamber of Commerce and Industry (DCCI).

Moreover, inadequate access to finance, deteriorating law and order, rising dollar prices, delays in import and export procedures, high loan interest and tax rates, and a complex revenue structure are making the situation difficult, he said.

At a DCCI-organised meeting with Old Dhaka businessmen today, Salam highlighted the major problems traders in the oldest part of the capital are facing, which are causing their sales to decline gradually.

In his speech, Dhaka Chamber President Taskeen Ahmed stressed the need to simplify the system according to the size, nature, and capacity of businesses, remove complexities in import-export procedures, and set a realistic VAT rate.

Joint initiatives from both the government and the private sector are needed to solve the problems of one of the country's oldest business hubs for trade and commerce, he said.

Establishing a business-friendly environment and improving the law-and-order situation are now essential, the DCCI president said.

The leaders of the leading trade body also said that the government could consider introducing package value-added tax (VAT) on essential commodities in order to control inflation.

At the event, Manash Kumar Barman, additional commissioner of customs, excise, and VAT Commissionerate for Dhaka South at the National Board of Revenue, urged businesses not to pay VAT without obtaining a receipt.

The government has taken initiatives to automate the VAT online registration process to ease VAT payment and protect businesses from harassment, he said.

To ease traffic congestion in Old Dhaka, traffic police will be deployed at eight key points in the area, said Md Jashim Uddin, deputy commissioner of police of the Lalbagh Division of Dhaka Metropolitan Police.

At the same time, he also urged local traders to come forward and recruit volunteers to help manage the situation.

Manwar Hossain, chairman of Anwar Group of Industries and a former director of DCCI, demanded a widening of the tax net and rationalization of the tax rate.

Selim Al Mamun, director for research at the Chief Economist's Unit of Bangladesh Bank, also spoke.