The Dhaka Chamber of Commerce and Industry (DCCI) has come up with a suggestion to appoint an ombudsman for settling trade and tax related disputes and ensuring good governance in the country's business arena.

"Good governance in business is essential to attract investment. We urge the government to appoint an ombudsman so that the person can improve the situation," DCCI President Fazle RM Hasan told a press briefing yesterday.

Speaking at the 'Meet the Press on DCCI Budget Proposals 2004-05', Hasan said small and medium enterprises are facing closure due to high cost of doing business, high

interest rate on bank loans and lack of easy access to capital.

About 5.5 lakh small and medium industries have been closed in the last five years mainly because of these problems, he mentioned.

Red tape, infrastructural problems at ports, electricity, gas, telecoms and their high operational costs push the cost of doing business up, the DCCI president said seeking immediate policy measures to address these issues.

Referring to Bangladesh Bank's recently launched Tk 100 crore refinance scheme to promote the 'missing-middle' group, he said the fund is not adequate for the real target group, the SMEs having no access to bank loans.

"The government should ear-

mark at least Tk 1,000 crore for the scheme," the DCCI chief said adding, the SMEs generate 90 percent of the total employment while 80 percent export earnings come from these industries.

In order to increase the government's revenue income, the DCCI suggested bringing audit firms, lawyers, doctors and other professional groups under the tax net.

There was a provision for recognising the businesspeople for their contribution in paying taxes but the government did not continue the recognition, M Yunus, former president of DCCI, said urging the government to restart the scheme.

The DCCI leaders said the government should extend online facility to all in the self-assessment

category to encourage them in paying tax. "It should be done so that the taxpayers don't need to go to the tax officials," said Syeeful Islam, a leader of Bangladesh Garment Manufacturers and Exporters Association.

This will help the taxpayers transfer funds for tax purpose from their bank accounts and also the government to reduce expenses for administration, he felt.

Manzur ur Rahman Raskin, convenor of Vat, Tariff and Taxation Standing Committee of the chamber, said 10 percent dividend distribution tax in case of declaring dividends by the companies should be withdrawn to make the capital market vibrant.