A delegation from the Foreign Investors’ Chamber of Commerce and Industry, led by president Zaved Akhtar, met with finance and commerce adviser Salehuddin Ahmed on September 29, 2024, at his office to discuss vital reforms in Bangladesh’s financial sector.
During the meeting, Salehuddin commended FICCI for their support and emphasised the government’s commitment to increasing foreign direct investment as a critical driver of economic growth. He stated, ‘Without the private sector, the country cannot make significant progress,’ highlighting the importance of collaboration between the government and private enterprises.
FICCI president presented a comprehensive outline on how the interim government can implement necessary reforms to enhance the business climate.
He recommended practical measures, including reforms in the banking sector and tax-revenue administration, as well as maintaining law and order to foster a favorable business environment. They also proposed leveraging world-class regulatory technology to enhance efficiency and effectiveness, increasing the tax-to-GDP ratio, and easing transaction processes.
Additionally, FICCI president highlighted the need to address the punitive corporate tax, particularly in the banking sector. They also raised concerns about the additional withholding income tax on interest payments earned by non-resident institutions from foreign currency borrowing, which raises the cost of borrowing for Bangladeshi borrowers.
Furthermore, FICCI emphasised that banks should not bear the responsibility for tax deductions at source for customers’ direct tax payments. They called for the simplification of tax deduction processes, suggesting that the ultimate responsibility should lie with the taxpayer.
Salehuddin assured the delegation of the government’s commitment to addressing these issues and working collaboratively with FICCI to foster a more favorable business environment in Bangladesh.
The meeting was attended by FICCI advisor to the Board Naser Ezaz Bijoy, board members Ala Uddin Ahmad, Najith Meewanage, Md Miarul Haque, Faisal Ahmed Chowdhury, Rubaba Dowla, Sumitava Basu, MHM Fairoz, CEO of Citi NA Moinul Huq, country managing partner at PricewaterhouseCoopers Bangladesh Shams Zaman, head of markets and security services (acting CEO) of HSBC Bashar Mustafa Tareq and executive director of TIM Nurul Kabir. Commerce secretary Md Selim Uddin was also present at the meeting.
