FBCCI and e-CAB against new act for Digital commerce
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) and the e-Commerce Association of Bangladesh (e-CAB) are urging the government to enforce the current laws rather than creating new ones.
Two leading organizations have strongly criticized the proposed Digital Commerce Act 2023, which aims to govern the industry, for hindering digital trade’s growth and being misaligned with the government’s vision of creating a “Smart Bangladesh.”
They have also expressed concern that the act’s passage would stifle the budding digital commerce industry’s growth instead of promoting its expansion.
In addition, they believe that the new law would discourage foreign direct investment (FDI) and impede small and medium-sized digital commerce entrepreneurs’ growth.
They made these remarks while discussing the draft act at a program hosted by the country’s apex trade body and e-CAB at FBCCI hall in the capital on Sunday.
During a discussion programme on the draft Digital Commerce Act 2023, Mohammad Sahab Uddin, the vice president of e-CAB, and Syeda Ambareen Reza, the co-founder and managing director of foodpanda Bangladesh and director of e-CAB, gave a keynote presentation. They shared that only 2% of the total retail transaction is happening digitally in Bangladesh, while India and China have 7% and 27.8%, respectively.
They also noted that the proposed Digital Commerce Act 2023 seems to be more focused on punishing entrepreneurs instead of effectively managing the burgeoning industry.
Additionally, the new act would lead to duplication of functions among government agencies. Ambareen Reza also explained that the proposed act imposes additional punishment for the same activities, which is against the country’s constitution. It’s like two different punishments for the same offence, but a higher punishment if it’s done by e-commerce or digital commerce.
The proposed Digital Commerce Act 2023 has faced strong opposition from the country’s entrepreneurs, who argue that the new law will discourage foreign direct investment and hinder the growth of small- and medium-sized digital commerce enterprises in Bangladesh.
The new act would also duplicate the functions of government agencies and impose harsher punishments for the same activities already covered by existing laws. Opponents argue that the existing regulations should be enforced, rather than creating new ones that would hinder the growth and expansion of the industry.
The lack of consultation with entrepreneurs in the drafting process has been a major criticism of the proposed law.
