Five-year tax roadmap aims to reassure investors on policy continuity: Bida chief

The government's decision to announce a five-year tax policy roadmap in the FY27 budget is intended to reassure local and foreign investors about Bangladesh's commitment to policy continuity and strengthen investor confidence, Bida Executive Chairman Chowdhury Ashik Mahmud Bin Harun said today (5 August).

Speaking at a briefing titled "Investment-related Budget Outcomes" at Biniyog Bhaban in Agargaon, Ashik said investors had long identified two major concerns about Bangladesh: policy continuity and political continuity.

While the government could not resolve every concern immediately, the latest budget was designed to send a clear message of long-term policy stability, he said.

The briefing brought together investors, business leaders and development partners to review investment-related measures in the FY2026-27 budget. Discussions focused on three priorities: deregulation, long-term tax stability and targeted incentives for strategic sectors.

Ashik said foreign investors and international media regularly asked about the biggest obstacle to investing in Bangladesh. "Their main concern was that Bangladesh lacked policy continuity and political continuity."

He described the national budget as one of the government's most important tools for communicating long-term policy direction, while acknowledging that investor confidence would take time to build.

"If we send a signal today, billions of dollars of investment will not arrive tomorrow. This is a long-term process. If we deliver the same consistent message once, twice and three times, investors will begin to believe that Bangladesh is genuinely committed to implementing what it promises," he said.

Noting that the five-year tax policy roadmap marked a significant departure from previous practice, Ashik said, "Even six months ago, no one imagined the government would announce a five-year tax policy in advance. Bangladesh has never before provided this kind of long-term policy direction. We are also treating it as a test case."

Energy shortages remain a challenge

Ashik further said the government viewed gas and energy shortages as a top priority but acknowledged that the problems could not be solved overnight.

"We all know where the problem lies, and the government is working on it continuously. But the reality is that there is no immediate solution. The focus must therefore be on implementing long-term solutions as quickly as possible," he said.

He added that the government was considering relief measures for businesses affected by gas shortages, including possible reductions in service fees and other government charges.

He said the issue had recently been discussed at a meeting of the Bangladesh Economic Zones Authority (Beza), as many investors continued repaying bank loans despite not receiving gas supplies.

Implementation remains key

Responding to another question, Ashik said effective implementation remained the government's biggest challenge. He cited examples from a recent meeting with entrepreneurs in Rajshahi, where many small business owners were unaware of Bangladesh Bank's incentive schemes, while another businessman complained that customs officials had yet to receive instructions to implement a newly announced policy.

"In the digital age, this should not happen. But incidents like these show that it still takes time for policy decisions to reach the field level," he said.

Rehan Asif Asad, adviser to the prime minister for posts, telecommunications and information technology, who attended the programme as chief guest, echoed the point, saying effective execution would determine whether the budget's intended benefits reached businesses and investors.

Industry calls for incentives

Bangladesh Semiconductor Industry Association (BSIA) President MA Jabbar urged the government to provide the semiconductor industry with a 15% cash incentive over the next five years, similar to support previously extended to the ready-made garment and information technology sectors.

He said the measure would encourage investment, technology transfer, skills development and faster growth of the high value-added industry.

In response, NBR Acting Chairman Ahsan Habib, who attended as one of the special guests, said the proposal had been noted and would certainly be considered but it was too early to confirm any incentive package.

Meanwhile, at the programme, BGMEA Secretary General Major General (Retd) Dr Md Sahedul Islam welcomed the NBR's efforts to improve the ease of doing business and promote exports, while expressing confidence that the government was working to improve gas and electricity supplies.