Tax policy, administration key barriers to investment: Experts

Experts identified tax policy and tax administration as major concerns for investors, warning that persistent structural issues are undermining the country’s investment climate.
They made the remarks at a session titled “Conducive Fiscal Policy for a Better Investment Climate” held at the Renaissance Dhaka Gulshan Hotel on Sunday.
The event brought together policymakers, economists, development partners, business leaders and members of the diplomatic community to discuss Bangladesh’s fiscal outlook.
The keynote speaker, Dr M Masrur Reaz, founder and chairman of Policy Exchange Bangladesh, said both tax policy and tax administration remain key investor concerns.
He said relatively high corporate tax rates, lengthy compliance procedures, a fragmented administrative structure, policy unpredictability, complex dispute resolution mechanisms and frequent mid-year changes continue to create uncertainty in the investment environment.
The panel discussion was moderated by Shams Zaman, member of the FICCI Board of Directors and country managing partner at PwC. 
Panelists included Jean Pesme, division director for Bangladesh and Bhutan at the World Bank; Chandan Sapkota, country economist at the Asian Development Bank’s Bangladesh Resident Mission; Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD); and Abul Kasem Khan, chairperson of Business Initiative Leading Development (BUILD).
They highlighted challenges such as policy inconsistency, complexity in the tax system and limited coordination among regulatory bodies. 
The panel stressed the need for greater policy stability, a broader tax base, improved revenue administration and a more transparent and business-friendly environment to attract and retain foreign direct investment. FICCI President and Managing Director of Berger Paints Bangladesh Limited, Rupali Haque Chowdhury, underscored the importance of a stable, transparent and forward-looking fiscal framework to sustain investor confidence.
She said predictable tax policies, simplified compliance procedures and consistent regulations are essential for long-term investment decisions.
She also highlighted the role of foreign investors in driving economic growth, employment and technology transfer, calling for stronger public-private collaboration and evidence-based policymaking to maintain competitiveness in a changing global landscape.
FICCI Senior Vice President and Chairman and Managing Director of Nestlé Bangladesh PLC, Deepal Abeywickrema, delivered the vote of thanks, expressing appreciation to the speakers and participants.
He said the discussion provided valuable insights into fiscal challenges and practical ways forward, and reaffirmed FICCI’s commitment to continued advocacy for a more conducive investment climate.
The event was attended by FICCI board members, CEOs of member companies, representatives from various embassies, development partners and other stakeholders from the business community.
FICCI reiterated its commitment to constructive engagement with the government and relevant stakeholders to promote a predictable, transparent and investment-friendly fiscal environment that supports sustainable economic growth.
As a leading chamber, FICCI represents foreign investors from 35 countries across 21 sectors in Bangladesh. 
It noted that its around 210 member companies contribute a significant share of internal revenue and account for more than 90% of inward FDI in the country.