Foreign investors urge improved investment climate in Bangladesh

Foreign investors have urged Bangladesh to ensure predictable tax policies and improve the overall investment climate to attract and retain both local and foreign investment.

During a pre-budget meeting with the National Board of Revenue (NBR) today (5 April), the American Chamber of Commerce in Bangladesh (AmCham) stressed the importance of long-term tax certainty for investors.

The chamber called for a gradual reduction in corporate tax rates and the introduction of structured tax stability frameworks for large-scale investments, saying consistent policies are key to boosting investor confidence and enabling long-term planning.

It also recommended simplifying tax structures, reducing overlapping tax burdens, rationalising minimum tax rates and addressing double taxation issues to ensure fair tax treatment across sectors.

“These recommendations aim to create a more balanced, transparent and competitive tax system while supporting sustainable revenue generation,” said AmCham President Syed Ershad Ahmed.

To improve the investment climate, AmCham also suggested aligning domestic regulations with international agreements and introducing advanced tax ruling systems.

It further called for clearer guidelines on tax holidays, including their benefits, eligibility criteria and scope, to reduce ambiguity for investors.

The chamber highlighted the need to modernise tax administration and strengthen institutional governance, suggesting measures such as simplifying compliance procedures, improving VAT refund mechanisms and advancing reforms, including the planned separation of the NBR.

Meanwhile, Nuria Lopez, chairperson of the European Union Chamber of Commerce in Bangladesh (EuroCham), also emphasised the need for a predictable tax regime, reduced tariff protection, simplification of the VAT system and removal of trade barriers.

Khorshed Alam, president of the Bangladesh China Chamber of Commerce and Industry (BCCCI), called for lower tax rates for foreign nationals investing in property in Bangladesh.

He said many Chinese nationals working in Bangladesh are reluctant to invest locally, instead preferring countries such as Singapore and Malaysia due to lower tax rates.

“I asked them why they are not willing to invest in property here. They said that in Singapore the tax rate is around 7%, whereas in Bangladesh it exceeds 35%, making it less viable for investment,” he added.