The interim government is considering the feasibility of providing a special investment opportunity for undisclosed wealth for a limited period in the next fiscal year.
Discussions are ongoing to determine whether this window should last for three or six months.
However, several key policymakers strongly oppose granting blanket investment privileges to undeclared funds, arguing that such measures would be unfair to honest and regular taxpayers, according to sources from the National Board of Revenue (NBR).
A meeting at the Chief Adviser’s Office on Wednesday (5 February), is set to deliberate on the potential investment of undisclosed wealth.
The meeting will also address several critical aspects of the revenue budget, including the tax-free income threshold, corporate tax rates, and minimum tax requirements for the upcoming fiscal year.
Additionally, discussions will cover the feasibility of imposing a uniform VAT rate and revising import duties on widely used raw materials.
To encourage new investments, the government is also considering providing duty exemptions on machinery imports for industrial establishments.
A senior NBR official, speaking on condition of anonymity, disclosed that in recent years, certain unscrupulous importers, in collusion with the former administration, engaged in large-scale capital flight by manipulating trade data.
These individuals have not only evaded taxes domestically but also accumulated significant funds abroad. With stricter legal enforcement over the past few months, many of these importers have been forced to curtail or suspend operations.
Interim government is now exploring ways to bring these undisclosed funds back into the national economy.
NBR Chairman Abdur Rahman Khan affirmed that the upcoming fiscal budget will prioritise investment growth while also incorporating measures to recover laundered funds.
Interim government is actively considering strategies to retrieve tax-evaded money and will seek guidance from senior policymakers on this matter.
Bangladesh Investment Development Authority (BIDA) has submitted recommendations to the Chief Adviser’s Office, the Ministry of Finance, the NBR, and other relevant agencies, identifying 19 key industrial sectors with the highest investment potential.
BIDA has proposed various incentives to stimulate growth in these sectors, which include basic apparel, pharmaceuticals (excluding APIs), agricultural processing, IT-enabled services, advanced textiles, and renewable energy.
Other priority sectors include automotive parts, footwear, light engineering, leather, EV batteries, medical devices, technical textiles, toys, active pharmaceutical ingredients, semiconductors, and plastics.
BIDA has suggested comprehensive tax exemptions for these sectors to enhance investment attractiveness.
The upcoming meeting at the Chief Adviser’s Office is expected to address these recommendations.
BIDA Executive Chairman Ashiq Chowdhury stated that the agency has developed an investment "heat map" identifying these 19 high-potential sectors.
He noted that BIDA has communicated to relevant government entities the necessary measures for boosting investments in these industries.
“Now, it remains to be seen what steps the government will take, though there is a clear intent to encourage investment growth,” he added.
An NBR-prepared summary of the revenue budget highlights that, during the tenure of the previous government, over $16 billion was illicitly transferred out of the country each year.
Given the increasing difficulty of financing the national budget solely through revenue collection, recovering these laundered funds has become imperative.
The summary also stresses the need for prompt action to recover outstanding tax dues from defaulters.
Since the interim government assumed office, fraudulent trade declarations in imports and exports have declined significantly.
Many large-scale illicit traders have either reduced their trade activities or halted them altogether.
In this evolving economic landscape, the government must devise new strategies to recover the siphoned funds.
Meanwhile, BIDA has formally proposed corporate tax adjustments to the Ministry of Finance as part of the next budget.
The proposal particularly emphasises granting tax concessions to the 19 priority sectors to encourage investment and stimulate economic growth.
