Sunday, May 28, 2017 | ePaper

Foreign investors need favourable tax policy

  • Print
AN increasing number of trade organizations have been demanding a reduction in corporate tax rates in the upcoming 2017-18 National Budget. Foreign Investors' Chamber of Commerce and Industry has asked for cutting corporate tax by 10 percentage points, which is now hovering between 25 percent and 45 percent. To attract Foreign Direct Invest (FDI), which has decreased, and increase domestic investment in large manufacturing sectors, the government should reduce the corporate tax as the tax rate is higher than many developing countries. While large amounts of investment is unlikely due to bottlenecks and weak aggregate demand, the burdensome corporate tax pushes even the local investors to look for investment in another country by laundering money and the foreign investors to look for alternate markets. If the tax is reduced it will attract more investment, and thereby more employment will be generated, resulting in the speed up of the wheel of economic progress.

The trade body in a meeting with the National Board of Revenue (NBR) has called for comprehensive policies. Business people will get confidence if the laws and policies would not change every year as the frequent change in tax and revenue policies create difficulties for businesses to do future planning. The economic growth rate in the country is hovering around 6 percent in the last few years but the tragedy is the growth has not created significant levels of employment. So, the increasing numbers of youths who enter the job market remain unemployed and the expected growth in jobs doesn't occur.

Meanwhile, Bangladesh Women Chamber of Commerce and Industry (BWCCI) stressed the need for formulating a women entrepreneur-friendly budget. The chamber called for the continuation of the allocation of Tk 100 crore in the next budget to facilitate women entrepreneurship and set Tk 4 lakh as tax-free income limit for women.  It said entities run by women entrepreneurs should get VAT and tax waiver for up to Tk 50 lakh in annual turnover. They asked for low-cost loans for women, including for those who run cottage industries in rural and suburbs.

The upcoming budget should be a budget that can successfully create employment opportunities by encouraging investors to set up labour-intensive large manufacturing industries. Without a turn into manufacturing, the economic growth would not be sustainable beyond what the World Bank has projected. The corporations should be given incentives by lowering the corporate tax while female entrepreneurs need more facilities in the budget.

More News For this Category

Holy Ramzan is not for greedy business

THE Holy month of Ramzan starts from today with a surge in the pieces of essentials in the kitchen market to a new height. The government leaders said the

Political will important to reduce deaths on highways

DEATH tolls in the highway are only soaring on daily basis holding the nation hostage to unusual death of its citizen any day any time without least warning about it.

Need for evaluation of projects under implementation

Dr. M.  Abul Kashem Mozumder  and Dr.   Md. Shairul Mashreque  :Public policy in each policy area is implemented in the form of projects, Sub-projects and programs. Projects or various sub-projects

Reading the Quran for knowledge

K M Zubair :RECITATION OF the Holy Quran during the blessed month of Ramadan is a rewarding exercise. Muslims should try to give as much time as possible in prayers

Reduce poverty without ditching the poor

Jamila Haider and Steven J Lade :78 per cent of the world's poorest people live in rural areas According to the Organisation for Economic Co-operation and Development (OECD), development aid

Readers’ Forum

Spread of ChikungunyaThe Aedes mosquito has been creating much sufferance in the city by spreading the Chikungunya fever among the city dwellers. It appears that despite our best efforts to

HC ruling on illegally charged session fee of private English medium schools

THE High Court Division on last Thursday declared that all forms of session fees charged by the numerous English medium schools in the country as illegal. The verdict came

Probashi Kalyan Bank: Not helpful for migrant workers

MEDIA reports indicate that six-year old Probashi Kalyan Bank (PKB) is still unable to receive migrant workers' remittances for which it was established. As PKB is still a specialized

Asia dominate Badminton world

The Sudirman Cup World of Badminton is underway in Gold Coast of Australia. All the four semifinalists are from this continent after second seeded Denmark made surprise loss to

Rouhani the reformist President must now prove his mettle

Abbas Milani :Reformist Hassan Rouhani won by a landslide in President Election of Iran. At the same time, reformist candidates for city councils scored major victories throughout the country.