Bangladesh's proposed duty on machine imports raises FDI concern

This is as per media reports, which added the Bangladesh Economic Zones Authority (BEZA) has indicated its intent to appeal to the government for the withdrawal of this duty, a sentiment echoed by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) as well.

Despite the National Board of Revenue (NBR) stating the duty increase aims to enhance tax collection, stakeholders argued it erodes investor confidence even if FBCCI secretary general, Md Alamgir, contended that even a seemingly minor duty increase would diminish investor trust, advocating for its withdrawal.

Meanwhile, FBCCI president Mahbubul Alam reportedly plans to petition the government, emphasising the need for more incentives to foster planned industrialisation even as Dr. Selim Raihan of the South Asian Network on Economic Modeling has criticised the proposed duty as inconsistent policy, urging the government to maintain existing benefits for investors in the economic zones.

The executive chairman of BEZA, Shaikh Yusuf Harun, also advocated for the withdrawal of the proposed duty to maintain investor-friendly policies even as BEZA anticipates $1.5 billion in FDI for economic zones, offering tax exemptions on capital machinery and construction materials.

Fibre2Fashion News Desk (DR)