Tax rebate on provident fund investment can bring revolutionary change in the industry
Venture Capital and Private Equity Association of Bangladesh (VCPEAB) has sought tax exemption for the Alternative Investment Fund Managers (AIFM) and High net worth Individuals (HNI) investors, and tax rebate on provident fund investments in the budget for the fiscal year 2019-20.
They made the demand at a press conference at the Janata Tower, Karwan Bazar in the capital on Thursday.
Shameem Ahsan, chairman of VCPEAB, said: “Venture capital directly triggers employment generation, creates self-employment opportunities, and is often the only available source of financing to small and young companies,” he said.
Shameem further added: “Policy support regarding tax exemption for the AIFM and HNI investors, and tax rebate on provident fund investment can bring revolutionary change in the industry.”
Wali ul Maroof Matin, VCPEAB director and Maslin Capital Limited MD, said: “Alternative Investment fund mobilization is the most critical financial inclusion process the world economy is practicing now. This is the way to finance new talents and technology in the entire real sector i.e. agriculture, industry and service.”
“Without the alternative investment funds, as being promoted by the government, in particular Bangladesh Securities and Exchange Commission (BSEC) and the Banking Division of the Ministry of Finance, our national graduation to high income country will be impaired. Foreign investors are rushing to Bangladesh now more than any time before” he added.
VCPEAB Vice Chairman Zia U Ahmed and Secretary General Shawkat Hossain spoke at the program, among others.
Bangladesh Securities and Exchange Commission (BSEC) issued the Alternative Investment Rules in 2015.
Under the rule, various venture capital and private equity companies have been established in Bangladesh.
In addition to these, many foreign venture capital companies are working in Bangladesh. These venture capital and private equity companies formed “Venture Capital and Private Equity Association of Bangladesh” (VCPEAB) in 2016 that works to develop the local startup ecosystem.