Why investment confidence crisis persists

Syed Nasim Manzur, managing director of Apex Footwear, believes Bangladesh needs major reforms to its tax structure to foster private sector growth and attract new investment.

According to him, the current corporate tax rate of 27.5 percent is higher than that of many regional competitors. To make the investment climate more attractive, Bangladesh should consider reducing the corporate tax rate to 20 percent, similar to Vietnam.

Manzur said the biggest challenge for investors is not merely the tax rate, but policy uncertainty and administrative complexities. Frequent changes in policies and tax regulations make it difficult for businesses to undertake long-term planning. He therefore stressed the need for a stable and predictable tax regime for at least three years.

Highlighting weaknesses in the country's trade and supply chain systems, he criticized airport warehouse management. He noted that the lack of modern storage facilities causes damage to raw materials and goods worth several hundred million dollars annually, resulting in significant losses for the export and industrial sectors.

Emphasizing the need to modernize tax administration, Manzur said replacing conventional methods with digital and risk-based audit systems would improve tax collection efficiency while reducing harassment of businesses.

He also expressed concern about the healthcare sector, noting that nearly 74 percent of total healthcare expenditures in Bangladesh are paid out of pocket by citizens, a situation he described as highly concerning for a developing economy.

To improve the quality and capacity of healthcare services, he suggested taking initiatives to attract greater foreign investment into the sector.