National Board of Revenue (NBR) chairman Abdul Mazid Wednesday called for calculating the balance-sheet on the foreign direct investment (FDI), as he suspects undercover money smuggling in the name of FDI, reports UNB.
"This is the time we should calculate the balance-sheet of the FDI," he said on a note of scepticism at a pre-budget meeting with the representatives from computer, ICT and telecommunications sectors in the NBR conference room.
He raised a serious allegation that in the name of FDI people from abroad came to Bangladesh and took syndicated loans from banks and did business.
"Where is the FDI in this? You do business with the money from local sources, create employment of few people, but send huge amount of foreign currency to the native country," he said, indicating the state of business being done here by a section of foreign investors.
The NBR chairman categorically stated that this type of FDI will not be entertained in the next budget, as the country is now stepping ahead towards graduating into a mid-level economy (shedding its LDC tag).
He also opined against the import of those types of software, which are produced by local manufacturers. "The government wants to facilitate the local software manufacturers," he said.
Association of Mobile Telecom Operators in Bangladesh (AMTOB) president Fazlur Rahman urged tax waiver on mobile SIM (subscriber identity module). "This tax totally blocked the growth of the country's telecommunications sector," he said.
Bangladesh Computer Samity President Mostafa Jabbar noted that information technology is the only tool to provide employment to the educated unemployed people.
He pleaded for total duty waiver on computer and computer-related accessories, which are still too costly for the commoners.
The IT expert also said the government should consider VAT waiver on the internet usage, as the present government in its manifesto pledged to build a digital Bangladesh by 2021.
Mostafa Jabbar opened Pandora's Box as he alleged that banks and corporate houses of the country are engaged in "money laundering in the name of software import."
"Higher tax and supplementary duty should be imposed on importing software, which the local software manufacturers are producing," he said.
Monjur Ahmed of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) corroborated Jabbar's allegations, saying that money laundering is going on in the name of software import.
"This should be stopped. NBR should not allow import of software that is produced here by the local companies. Higher supplementary duties can protect the local producers," he said.
Bangladesh Association of Software and Information Services (BASIS) president Habibullah Karim urged the government to announce income-tax exemption for the software manufacturing sector until 2017.
"This will facilitate local and foreign investors to invest more in the country, and thus, the employment opportunity will increase manifold," he said.
