BUSINESS friendly policies and predictable tax and tariff regime are some of the fiscal issues which are very important to lure enough Foreign Direct Investment (FDI) to the country. Taking the point seriously into consideration, the Foreign Investors Chamber of Commerce and Industry (FICCI) has recommended measures to the National Board of Revenue (NBR) for action while finalising tax measures related to FDI. They suggested dialogue with local and foreign stakeholders to remove concerns in this regard. It has been reported in a national English daily on Friday and we also share their views taking into consideration the sensitivities of the matter in question. We hold the view that Bangladesh needs steady flow of FDI to support business expansion and set up new business which in turn is very important to create new jobs and income to people entering the job market and secure the steady growth of the economy which is growing above 6 percent annually in recent time.
Bangladesh economy is growing fast with hefty domestic investment along with FDI in some areas such as garment, telecommunication and some other service sectors. We also require more investment in energy sector such as coal extraction and gas exploration. Only the enough flow of FDI can tackle such huge investment requirement in the energy sector and technical support to develop it in the fledgling energy sector.
As we see, the FICCI in a pre-budget discussion with NBR made the strategic suggestions to create a level playing field for both the local and foreign investors to tap the FDI resources that may be arriving to Bangladesh economy. Bangladesh is an emerging destination of FDIs in South Asia as more Chinese investors are relocating their apparel industry in Bangladesh. More investors from Korea, Hong Kong, Malaysia, UK, Singapore area also slowly crowding in the local market and we believe that a business friendly tax and tariff regime is highly important to lure them and hold them on the ground.
Another important issue that the FICCI leaders made to NBR but more relevant to the country’s political leaders and policy makers also, is to ensure political stability to support business. Disruption in Roads and Highways create bottleneck to timely shipment of exports and transportation of raw materials to factories. Fears of violence and vandalism, destruction of transport vehicles and other property spread panic and investors keep away from visiting the country in fear if security. Moreover, labour unrest is yet another cause of concern to the foreign investors and only the political leaders and workers unions can make sure that the country will enjoy the needed stability that foreign investors bother so much in putting money to a new country away from their home. We ask the NBR to give proper attention to the need of FDIs and its protection both from harsh fiscal regime and political chaos. Bangladesh economy is poised to move forward and FDIs is one of the big players. Their concerns need to be properly dealt with.
