• Monday, Nov 30, 2020
  • Last Update : 03:23 am

Dhaka aims to ease foreign concerns for companies exiting China

  • Published at 06:42 pm October 26th, 2020
FDI foreign direct investment bigstock
BIGSTOCK

To this end, a team has already been formed under the leadership of Prime Minister's Principal Secretary Dr Ahmed Kaikaus to make the necessary recommendations for a simplified FDI policy and taxation system

Bangladesh is looking at simplifying its foreign direct investment (FDI) policy as well as the corporate taxation system to lure companies seeking to move their manufacturing base from China in view of the Covid-19 pandemic.

According to Internal Resources Division (IRD) sources, a team has already been formed under the leadership of Prime Minister's Principal Secretary Dr Ahmed Kaikaus to make the necessary recommendations for a simplified FDI policy and taxation system.

The move comes in the wake of Japanese investors expressing their reservations about the existing FDI norms and corporate taxation system. Currently, there are some 310 Japanese companies operating in Bangladesh. Japan's cumulative FDI into Dhaka is $3 billion.

"The government has directed the National Board of Revenue (NBR) to make the FDI more lucrative through some amendments in the policy. A high-level committee has already been formed to formulate a set of recommendations," a senior Finance Ministry official said.

Senior NBR officials -- including Member (Tax Policy) Syed Golam Kibria, Member (VAT Policy) Masud Sadique and Second Secretary (Customs Policy) Mehraj-Ul-Alam Samrat -- are part of the panel.

The Finance Ministry official said that the government has been giving importance to Japanese investors, as they are mainly looking to exit China and scouting for new countries to set up shops.

It may be mentioned here that Japan has already allocated USD 2.2 billion of its record economic stimulus package to help its manufacturers shift production out of China, with coronavirus disrupting supply chains between the major trading partners.

Japan External Trade Organisation's country representative Yuji Ando recently said at the Economic Reporters Forum that although more Japanese companies are expected to come to Bangladesh every year, the investment environment needs to be further congenial.

Calling for an improvement in the investment climate in Dhaka in favour of Japanese companies, he had said, "There are many challenges that still exist for Japanese companies and for other foreign companies in Bangladesh, including in infrastructure and taxation."

Responding to a poser on the relocation of Japanese companies from China, the Jetro Country representative had said the ASEAN countries were being given the priority.

Citing an example of Jetro annual study, Ando said that 70 per cent Japanese companies in Bangladesh are keen on expanding their businesses, which is the highest among other countries, despite a number of bottlenecks in the way of smooth investment.

56
52
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail