Around 15000 beauty parlors are on the brink of closure across the country, due to the pandemic caused by Covid-19. It is estimated that the beauty business, usually owned, run, staffed and patronized by women, contribute BDT 5 billion (500 crore) annually to the national economy and employ around 0.15 million women. Unfortunately these substantial figures go unrecognized and entrepreneurs are struggling to survive.
Bangladesh Women Chamber of Commerce and Industry organized a digital meeting with owners of beauty salons on May 14 2020 chaired by President of BWCCI Selima Ahmad MP, along with Senior Vice President Sangita Ahmed, board members and salon owners from all over Bangladesh.
While they fully support the government’s decision of a complete lockdown, the owners lamented that although businesses are closed since March they still have to pay house rent, VAT, utility bills, staff salary and bank loan EMIs in spite of zero income.
They stressed on the following immediate needs for survival: • VAT and TAX exemption for 6 months after opening; VAT rate reduction to 4% from 15% for all beauty salons; 6 month grace period on repayment of new bank loans; Quick disbursement of bank loans at 2% interest rate; 50% house rent subsidy from government for rest of 2020; 50% staff salary subsidy from government for rest of the year; 50% government subsidy on purchase of SOP equipment to ensure safety of clients and staff after opening.
Many owners are now borrowing money from family members or friends to pay rent and staff salary. They face the dilemma of repaying these loans, sometimes with interest, with no income for last three months.
They all feel that without support from government, beauty parlors may have to face closure; lacs of women will become jobless with long term effects on our economy.
