ZCZC
BSS-52
CORPORATE-STRUCTURE-COUNTRY
Investment authorities mull over changing corporate structure of country
DHAKA, April 4, 2021 (BSS) – The Bangladesh Investment Development Authority (BIDA), the Bangladesh Economic Zones Authority and other government investment authorities have considered the corporate structure of the country as a barrier to attracting domestic and foreign investment.
They came up with the thoughts in the pre-budget discussion held at the NBR conference room on Wednesday last where BIDA and Bejar, Bangladesh Export Processing Zones Authority (BEPZA), Bangladesh Hi-Tech Park Authority and Business Initiative Leading Development (BUILD) also took part.
The concerned authorities have proposed a number of reforms in the areas of income tax, VAT and customs for National Board of Revenue (NBR) investors citing that the 2021-22 budget will be for the ‘post-corona economic recovery’.
Mentioning to reduce corporate tax rate to attract foreign investment, Mohsina Yasmin, executive member of Bangladesh Investment Development Authority, said that the corporate tax rate in Bangladesh is higher than the neighboring countries.
That is why foreign investors are reluctant to invest in Bangladesh even with various incentives, she said, adding that reducing corporate tax rates in certain sectors will increase investment in the country.
She advised to form a research team with the help of the NBR which will work on tax related activities.
BEPZA has proposed to reduce the corporate tax rate by 2 percent per annum as well as repeal the minimum tax law for companies.
BEPZA executive director Abdul Aziz said that even if a company incurs a loss, it has to pay a minimum tax, adding that this makes it difficult for the loss-making organization to survive.
In this case, it (minimum tax law) should be withdrawn, he said.
Managing Director of Bangladesh Hi-Tech Park Authority, Hosne Ara Begum said many foreign companies are coming to invest in the Hi-Tech Park.
Vietnam and China are showing interest to this end, she said, adding that but they are hesitating to invest as they are skeptical of getting any tax benefits.
BUILD also came up with a number of effective recommendations to boost the economy after COVID-19.
Build Chairperson Abul Kasem Khan recommended increasing the tax coverage, reducing corporate tax, reducing the gap between demand and supply by simplifying the tax collection process.
BSS/PR/SRH/KU/2040 HRS