Foreign investors urge improved investment climate
Foreign investors have urged Bangladesh to ensure predictable tax policies and improve the overall investment climate to attract and retain both local and foreign investment.
During a pre-budget meeting with the National Board of Revenue (NBR) on Sunday the American Chamber of Commerce in Bangladesh (AmCham) stressed the importance of long-term tax certainty for investors.
The chamber called for a gradual reduction in corporate tax rates and the introduction of structured tax stability frameworks for large-scale investments, saying consistent policies are key to boosting investor confidence and enabling long-term planning.
The chamber specifically recommended a gradual reduction in corporate tax rates and the introduction of structured tax stability frameworks for large-scale investments.
AmCham’s other proposals included simplifying tax structures, reducing overlapping tax burdens, and addressing double taxation issues to ensure fair treatment across all sectors.
Syed Ershad Ahmed, President of AmCham, stated that these recommendations are designed to create a more balanced, transparent, and competitive tax system.
To further enhance the climate, the chamber suggested aligning domestic regulations with international agreements and implementing advanced tax ruling systems.
Investors highlighted the need for clearer guidelines on tax holidays, including explicit eligibility criteria and benefits to reduce ambiguity.
Proposed measures to strengthen institutional governance include simplifying compliance procedures, improving VAT refund mechanisms, and advancing the planned separation of the NBR.
Nuria Lopez, chairperson of the European Union Chamber of Commerce in Bangladesh (EuroCham), echoed these sentiments, stressing the importance of a predictable regime, the removal of trade barriers, and the reduction of tariff protection.
Khorshed Alam, president of the Bangladesh China Chamber of Commerce and Industry (BCCCI), called for lower tax rates for foreign nationals investing in property in Bangladesh.
He said many Chinese nationals working in Bangladesh are reluctant to invest locally, instead preferring countries such as Singapore and Malaysia due to lower tax rates.
“I asked them why they are not willing to invest in property here. They said that in Singapore the tax rate is around 7 per cent , whereas in Bangladesh it exceeds 35 per cent , making it less viable for investment,” he added.
