Survey Reveals 84% of CMSMEs Lack Bank Accounts

A recent survey conducted by the Policy Research Institute of Bangladesh highlights that approximately 84% of cottage, micro, small, and medium enterprises (CMSMEs) in the country do not possess bank accounts due to limited awareness and a lack of necessary documents. The study titled 'Use of Digital Financial Services among Households and Firms' further reveals that the few CMSMEs with bank accounts are predominantly located in urban and semi-urban areas.

The SME Foundation has submitted a comprehensive 56-point recommendation to the National Board of Revenue (NBR), advocating for distinct tax, duty, and tariff structures for small and medium enterprises (SMEs) in the upcoming budget. These proposals include the establishment of preferential tax regimes or clusters to provide SMEs with lower tax rates and simplified taxation processes. The aim is to create a supportive environment for SMEs, stimulate their growth, and enhance government revenue.

Companies in Bangladesh, particularly small and medium enterprises, are facing liquidation due to financial losses resulting from the Covid-19 pandemic and the Russia-Ukraine war. The Registrar of Joint Stock Companies and Firms (RJSC) reported that the number of company liquidations has been on the rise since the pandemic began, with 317 facing liquidation in the first nine months of the fiscal year 2022-23, compared to 301 in the whole of the previous fiscal year.