Online Desk  :   Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem has blamed widespread extortion in transport and markets for persistently high inflation in the country. He asserted that if extortion is curbed, inflation will naturally decline. Hatem made these remarks at a roundtable titled “Additional Tax Burden on Consumers: What Can Be Done?”, organised by Jago News at the Metropolitan Chamber of Commerce and Industry (MCCI) Conference Hall in the capital on Wednesday (February 12).

The discussion was attended by prominent figures, including economist and CPD Research Director Khondaker Golam Moazzem, Policy Exchange Bangladesh Chairman Dr M Masrur Riaz, economist Dr MM Akash, PRAN-RFL Group Chairman Ahsan Khan Chowdhury, former BIDS Director General Dr Mustafa K Mujeri, former National Board of Revenue (NBR) member Rezaul Hasan, BGMEA Chairman Mohiuddin Rubel, DCCI former President Ashraf Ahmed, Bangladesh Auto Biscuit and Bread Manufacturers Association President Shafiqur Rahman Bhuiyan, and ERF President Daulat Akhter Mala.

Allegations of ongoing extortion : Hatem pointed out that extortion in transport and key markets, such as Jatrabari and Karwan Bazar, is still rampant, despite changes in the political landscape. “I had heard from the media that the former Home Minister used to collect Tk 1.5 crore in extortion every night. There has been a change in leadership, but has extortion stopped? It is still happening in Jatrabari and other markets. Who is behind this? It must be stopped. Otherwise, inflation will not come down because these illegal costs keep prices high,” he said.

He also highlighted the harassment faced by export-oriented businesses at various transport checkpoints, including Sharif Melamine, Kanchpur Bridge, and Narayanganj. “Our export industry’s vehicles are stopped at multiple points where exporters are harassed. Authorities demand copies of LC and UD documents at random, which is not always feasible. On top of that, unnecessary fines are imposed without any justification. This kind of harassment must end, as it is disrupting shipments,” he added. Hatem further revealed that 39 companies’ vehicles were stopped just the previous day, with only five or six released after intervention.

Concerns over VAT on export-oriented industries : The BKMEA President also criticised the imposition of VAT on export-oriented industries, despite official claims of a zero VAT policy for the sector. “Suddenly, a trader is told they owe Tk 11 crore in VAT—without any signed documentation. Later, they are asked to negotiate, and the amount is brought down to Tk 2-3 crore. This kind of unnecessary harassment discourages exporters,” he said. Hatem urged the government and regulatory bodies to stop these unlawful practices, as they not only increase the cost of goods but also harm business confidence in Bangladesh’s economy.