BIDA proposes for reducing corporate tax rates to woo foreign investment

Bangladesh Investment Development Authority (BIDA) has proposed for reducing the corporate tax rates to woo more foreign direct investment in the country, reports BSS.

The BIDA made the proposal at a pre-budget meeting for the next fiscal year (FY23) with the National Board of Revenue (NBR) held at its conference room of the NBR Bhaban in the capital's Segunbagicha area on Thursday.

NBR chairman Abu Hena Md Rahmatul Muneem presided over the meeting.

Speaking on the occasion, BIDA's international investment development department director general Shah Mohammad Mahbub said that the international investors always consider the corporate tax rates of the neighbouring and competitor countries before making investment.

Stressing the need for reducing the corporate tax rates to motivate the foreign investors, he said that the corporate tax rates in many countries range from 21 to 24 per cent which is 32 per cent in Bangladesh for the non-listed companies which eventually shoots over 40 per cent.

"Such high rate needs to be reduced. If this can be done, then it would be possible to attract the foreign investors and thus Bangladesh could be presented more positively before the foreigners," added Mahbub.

NBR Chairman Muneem said that there is corporate tax exemption for some foreign companies for long-term basis. But, despite this, the government can consider the matter relating to corporate tax rates to attract more foreign investment.

Proposing for repealing the provision for holding mandatory ETINs for the directors of foreign firms, Muneem said that the directors of the companies need to have ETINs as per the law.

But, the large-scale investors do not stay in Bangladesh without business or travel purpose for which there is a need to repeal the provision for having mandatory ETINs by them.

BIDA also proposed for bringing the local agents of online platforms like Facebook, Google and Amazon under the corporate tax rate net.

Besides, BIDA proposed for reducing the advance tax on the dividends of companies to 10 per cent from 20 per cent and for the individuals at 5 per cent from 10 per cent.

Apart from BIDA, Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), research organisations BUILD among others held pre-budget meetings with the revenue board.