In a move to attract foreign entities that are looking to shift their manufacturing base from China, Bangladesh Government is reportedly planning to simplify the corporate taxation system as well as foreign direct investment (FDI) policy.
According to media reports which quoted Finance Ministry officials, the Government is giving special emphasis on Japanese investors as they are reportedly looking for alternate destinations to leave China.
Reports further claimed that a team has been formed under the leadership of Dr. Ahmed Kaikaus, Prime Minister’s Principal Secretary, to recommend how to simplify the taxation system and FDI policy.
A high-level committee, which has Senior NBR officials including Member (Tax Policy) Syed Golam Kibria, Second Secretary (Customs Policy) Mehraj-Ul-Alam Samrat and Member (VAT Policy) Masud Sadique as part of the panel, has already been formed to formulate a set of recommendations, reportedly maintained a high-rung official of the Finance Ministry adding the Government has asked the NBR (National Board of Revenue) to make necessary policy amendments to make FDI more lucrative.
The Government’s move reportedly follows close on heels of Japanese investors voicing reservations on the current FDI norms and corporate taxation system.
It may be mentioned here that JETRO (Japan External Trade Organisation) country representative Yuji Ando recently underlined that even though more Japanese companies were expected to come to Bangladesh, the environment related to investment needed to be made more congenial.