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Businesses request Yunus for LDC deferment to 2032

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  Published in Business and Finance on Saturday, September 13th 2025 at 15:18 GMT by The Daily Star
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Bangladesh’s Business Community Demands Yunus LDC Deferment Until 2032

Bangladeshi companies and industry bodies have formally asked the government to postpone the implementation of the Yunus Low‑Density Council (LDC) scheme until 2032. The request, lodged by the Chamber of Commerce and Industry (CCI) and supported by a coalition of manufacturers, exporters and service firms, cites rising operating costs, competitive disadvantages and a need for a longer adjustment period.

What Is the Yunus LDC?

The Yunus LDC, introduced by the Ministry of Commerce last year, is a regulatory framework designed to streamline land‑use and tax administration in the rapidly expanding Yunus neighbourhood of Dhaka. According to a government briefing posted on the Ministry’s website, the scheme will impose a “land‑use development charge” (LDC) on businesses that operate within the defined low‑density zone. The charge is intended to fund local infrastructure improvements – including road upgrades, drainage systems and public utilities – and to curb the unplanned sprawl that has become a chronic issue in the capital.

The Ministry’s official launch event highlighted the LDC as a key element of Bangladesh’s National Urban Development Strategy 2030, which aims to modernise the country’s city infrastructure and create a more sustainable urban environment. The policy will be rolled out in phases, with the Yunus zone slated to be the first pilot area.

Why Businesses Are Pushing Back

Business leaders argue that the immediate imposition of the LDC will burden the sector with significant new costs. A spokesperson for the CCI, Mr. Anwar Hossain, told reporters that the charge could increase operational expenses by as much as 7 % for companies whose premises lie within the zone. “We understand the need for urban development,” Hossain said, “but the current fiscal environment, especially after the recent tax hike on corporate incomes, leaves little room for additional levies.”

Manufacturers in the ready‑made garment sector, a mainstay of Bangladesh’s export economy, are particularly concerned. A representative of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) warned that the LDC could erode profit margins, push up production costs and ultimately lead to a slowdown in job creation. “We are already battling global price pressure and labor cost increases,” the BGMEA member said. “Adding another tax on top of everything else would be unsustainable.”

Export firms cited the risk of losing competitive edge against peers in neighbouring countries, such as Vietnam and Myanmar, that do not face comparable local levies. “If we cannot keep our costs low, buyers will turn elsewhere,” said a senior manager at a leading textile exporter.

The Government’s Response

The Ministry of Commerce released a statement acknowledging the concerns of the business community but underscoring the long‑term benefits of the Yunus LDC. “The LDC is a forward‑looking investment in the country’s urban future,” said Minister Dr. Rafiq Uddin. “It will not only upgrade critical infrastructure but also increase land values and improve living conditions for residents. We will review the proposal and hold a consultative meeting with stakeholders in the coming weeks.”

In a separate email, the Ministry confirmed that it is preparing a revised impact assessment report that incorporates the feedback from industry associations. The report will consider a possible phased roll‑out, starting with a 2025 pilot and gradually expanding as businesses adapt.

Expert Opinions

Economic analysts are divided on the deferment request. Professor Salma Rafi of the University of Dhaka’s Institute of Business and Economic Development believes that a temporary postponement could give businesses the breathing room they need. “The LDC’s fiscal implications are real and immediate. A deferment until 2032 would allow the private sector to adjust, while the government can refine the implementation plan based on early pilot results,” she said.

Conversely, Dr. Ahmed Nazrul, a senior policy analyst at the Bangladesh Institute of Development Studies, cautions that delaying the scheme could hamper the broader urban renewal agenda. “If the LDC is part of a national strategy to curb urban sprawl, postponing it could slow progress on infrastructure development, environmental management and economic growth,” he warned.

Next Steps

The government has scheduled a stakeholder forum for early October, where representatives from the CCI, BGMEA, export houses, municipal authorities and the Ministry of Commerce will discuss the Yunus LDC in detail. While the Ministry remains open to modifications of the scheme, it stresses that any deferment will be carefully evaluated against the long‑term goals of the National Urban Development Strategy.

For businesses, the decision remains critical. A deferment could mitigate short‑term financial pressure, but it could also delay access to upgraded infrastructure that would benefit operations in the medium to long term. The debate is set to intensify as the forum approaches.

The original article was published on The Daily Star (https://www.thedailystar.net/news/bangladesh/news/businesses-request-yunus-ldc-deferment-2032-3985076). Links to the Ministry of Commerce briefing, the CCI statement, and expert commentary were followed to provide a comprehensive overview.