Bangladesh Investment Development Authority (BIDA) has provided several recommendations to improve business confidence in the country as it is at a record low in many areas due to coronavirus crisis. However, most of its recommendations have often been ignored by the concerned authorities.
Several times, it sought policy interventions like forming a high-power national task force to tackle detracting economic condition but only been ignored.
Besides, it also wanted the suspension of regulatory compliances for local and foreign firms in the country to help them revive their business during corona-related emergency.
Director (Deputy Secretary) of BIDA, Mohammad Saiful Islam Bhayian sent letters to three secretaries - Finance, Internal Resources and Finance Institutions Division - to take necessary measures in this regard.
BIDA suggested, the task force will identify required ministries-based incentives packages. It will also evaluate and reform the incentive packages. The task force will also prepare economic impact map caused by Covid-19.
An official of BIDA, on condition of anonymity, said the recommendations of BIDA are often neglected but should be prioritized for recovery from Covid-19 induced economic fallout.
Former Finance adviser Dr AB Mirza Azizul Islam said, the government should consider the BIDA recommendations, especially the creation of a national task force which can provide valuable advice over the pandemic situation.
Other recommendations
BIDA provided other recommendations to ease the economic recovery process in their proposal.
The government should simplify the process of approving foreign loans.
There should be provision for working capital loan for businesses from foreign lenders.
Waiver of all fees for investor services provided by BIDA.
Time period to pay income tax should be 60 days due to coronavirus pandemic.
Besides, the tax returns date should be extended further for businesses.
Payment date of corporate tax and other taxes should be extended further.
The payment of the worker profit participation fund should be suspended or payment time is extended.
Businessmen should get interest free loans from banks for the next six months.
Payment time should be extended for utility bills of industries and businesses for attracting investment during and after the pandemic.
Payment system of Letter of Credits and offshore banking financing should be simplified.
Alternative credit rating strategy should be introduced for creating new fiscal facilities for start-ups and small informal businesses.
Bangladesh Bank should ensure that foreign investors can easily open bank accounts in local banks.
Equal incentive package for local and foreign investors should be allowed by the government.
