JASIM UDDIN HAROON |
September 15, 2022 08:49:08
September 15, 2022 8:11:30 PM
Retail trade still dominates the transition economy of Bangladesh, with the highest Gross Value Added (GVA) worth Tk 2,087 billion or almost 63%.
A latest release from the Bangladesh Bureau of Statistics (BBS) shows that the GVA of wholesale and retail services combined with the economy was worth Tk 3.339 trillion for the reference year 2021.
GVA represents the value of all goods and services produced in an economy after deducting the cost of inputs.
The added value of commercial services was paltry even a decade ago in 2010, totaling only Tk 385 billion, which subsequently grew faster.
The BBS conducted the survey in 2021 on commercial services and the updated results were calculated there.
Wholesale value added to the economy amounted to Tka 835.38 billion in the year under review.
The lowest gross value added was 416.67 billion taka, or 12.48%, from wholesale and retail trade and repair of motor vehicles and motorcycles, rickshaws and rickshaws. push.
However, the value added to the economy marked an annual increase of 24.11 percent during this period.
The total value of all fixed assets belonging to service trades was 1,255 billion taka.
The highest type of capital expenditure was land (633.9 billion taka), followed by machinery, computers and other instruments (213.8 billion taka) and furniture (163.4 billion taka). taka) respectively.
The total number of establishments was 2,540,897 in 2021. The number of establishments was however higher in 2010 at 2,650,123.
Value Added Tax (VAT) and other taxes for wholesale and retail establishments have been estimated here. The highest for retail trade is 46%, followed by wholesale and retail trade and repair of motor vehicles and motorcycles, rickshaws and rickshaws with 29% and wholesale 25% respectively.
The survey identifies issues facing wholesale and retail businesses that are hampering their potential growth.
The retail trade has the most problems due to the corona pandemic. Then they also have a lack of buyers, a lack of capital, high labor costs and high transportation costs.
Economists believe that the retail trade in commercial services has taken on many dimensions over the years. They say the new retail products and services in the Bangladesh economy have been added in the last 10 years. “In my opinion, the retail sector has contributed a lot to the economy as it is diversifying,” says Dr. M Masrur Reaz, Chairman of the Policy Exchange of Bangladesh.
He mentions that mobile-related services and his retail services are not a thing of the past.
He says the number of establishments has “decline to some extent as many retailers have not survived the competition”.