Move to attract more Japanese investment

The government has taken initiatives to restructure corporate tax and other tax related issues to fetch more Foreign Direct Investment (FDI) in the country.

Economic Relations Division (ERD) is working on this matter under the guidance of Prime Minister's Principal Secretary Ahmad Kaikaus, according to a source of the ERD.

This move came in the wake of call from the Japanese investors to ease tax structure, money transfer and other issues to promote Japanese investment in the country as Japan is shifting its manufacturing plants from China amid the deadly coronavirus pandemic and geopolitical hostilities between the two countries.

Vietnam, Cambodia and India managed to grab a larger share of the pie but in sharp contrast Bangladesh got nothing from the move of relocating Japanese investment from China, although many economists blamed skilled manpower and weak infrastructures of the country.

National Board of Revenue (NBR) has formed a high powered committee to advice on how to attract FDI from Japan which intends to relocate factories from China to elsewhere on the globe.

The committee is working on tax benefit related issues like income tax, duty policy, and VAT.

Tax Policy Member Syed Gulam Kibria, VAT Policy Member Masud Sadik and Second Secretary of Tax Policy Md. Meherajul Alam Samrat have been tasked with the assignment of creating better investment climate for Japanese investors.

Residential Representative of Japan External Trade Organization (JETRO) Yuji Ando recently said, "Bangladesh could be one of the places for Japanese investment if proper initiatives are taken. Despite infrastructural developments, there are many challenges like enacting easier tax provisions and creating investment friendly climate. If those issues are resolved quickly, Bangladesh could be an attractive place for the Japanese investors".

He also said, countries of Asian block will get preference in shifting Japanese industries from China.

Around 70% of the Japanese companies in Bangladesh want to expand business in Bangladesh, Yuji Ando added.

(sh/wi)