Bangladesh Investment Development Authority (Bida) has sought policy interventions and suspension of regulatory compliances for local and foreign firms in the country to help them revive their business during corona-related emergency.
The temporary suspension and exemption were sought taking into account the headwinds investors have been facing during the corona-induced crisis, a top Bida official have told Dhaka Tribune.
The policy interventions were sought in a letter to the finance ministry last week.
It sought provision for working capital loan for businesses from foreign lenders and waiver of all fees for investor services provided by the BIDA.
Currently, the authority provides around two dozens of services to investors. The fees for such services range from Tk500 to Tk5,000.
Services available at the BIDA include pre-investment information and counseling service, investor welcome service (faster immigration), registration/approval of foreign, joint-venture and local project, registration/approval of branch/liaison/representative offices, approving work permit for the foreign nationals and facilitating utility connections (electricity, gas, water & sewerage, telecom etc.).
Besides, it helps obtaining industrial plots, approving remittance of royalty, technical know-how and technical assistance fees and facilitates import of capital machinery & raw materials.
“As you are aware, the COVID-19 pandemic has created unprecedented economic uncertainties which could not be predicted earlier. The global growth predictions have almost diminished. The recovery of these targets requires concerted and cohesive measures for which, as an immediate step, govt has declared fiscal stimulus packages and other measures,” reads the letter to finance ministry.
“For ensuring business continuity and growth, among others, policy interventions at multiple stages from all investment facilitation organizations, is necessary. These may include temporary eliminations/reductions of regulatory compliances.”
To sustain the business and ensure continuity of the enterprises which has been experiencing setbacks due to the COVID-19 outbreak, BIDA has started discussing with the relevant stakeholders to ascertain the measures to be undertaken, says the letter.
The BIDA in its proposals suggested the government to reduce utility bills of industries for attracting investment during and after the pandemic.
The institution also suggested adopting business-friendly Tax/VAT recovery and enforcement policies to avoid business bank account freezing or closures.
The BIDA also recommended simplification of foreign loan approval procedures by shifting to notification from current procedures for all sectors, or at least priority sectors.
It also sought reduction of import duties for facilitating import of essential goods, as well as extending monthly VAT return submission date without penalty.
The authority further recommended deferment of the worker profit participation fund (WPPF) and provident fund contributions.
The organization also requested to waive all fees for investor services provided by BIDA during the pandemic period.
It recommended extending deadlines to submit all statutory return to RJSC and port storage fees.
Seeking anonymity, a BIDA official warned investment would decline sharply due to the coronavirus pandemic, which would give rise to unemployment.
That was why the recommendations were sent to the finance ministry so that they could take preventive actions, he added.
Established under Bangladesh Investment Development Authority (BIDA) Act 2016, the Bangladesh Investment Development Authority (BIDA) is the principal private investment promotion and facilitation agency of Bangladesh.
The BIDA was formed through the merger of the Privatisation Commission and the Board of Investment on Aug 31, 2016.
