A delegation of the Foreign Investors' Chamber of Commerce and Industry (FICCI) met finance and commerce adviser Dr Salehuddin Ahmed at his office. A delegation of the Foreign Investors' Chamber of Commerce and Industry (FICCI) on Sunday met finance and commerce adviser Dr Salehuddin Ahmed and underscored necessary reforms in the financial sector.
FICCI president Zaved Akhtar led the delegation at the meeting hosted at Dr Salehuddin's office.
The chamber body focused on crafting strategies to improve the country's business climate and attract increased foreign direct investment (FDI).
During the talks, Dr Salehuddin appreciated the FICCI's continued support and emphasised the government's commitment to fostering FDI as a crucial engine for economic growth.
He acknowledged the pivotal role of the private sector in driving national progress, stating: "The country cannot make significant progress without the private sector."
Dr Salehuddin highlighted the need for stronger collaboration between the government and private enterprises.
On the other hand, Mr Zaved presented a detailed plan on how the interim government could implement necessary reforms to create a more conducive environment for business and investment.
Among the key recommendations were reforms in the banking sector and tax-revenue administration along with ensuring law and order to maintain a favourable climate for investors.
Mr Zaved also proposed the adoption of advanced technology to improve the efficiency and effectiveness of financial regulations as well as measures to increase the tax-to-GDP ratio and simplify transaction processes for businesses.
One of the major concerns raised by the FICCI was the high corporate tax rate, particularly within the banking sector that, they believe, hinders the competitiveness of businesses.
They also voiced concerns about the additional withholding income tax on interest payments earned by non-resident institutions from foreign currency borrowing, a policy that increases borrowing costs for Bangladeshi businesses.
Mr Zaved urged the government to address these issues to ease the financial burden on local enterprises.
The FICCI also suggested that banks should not be held responsible for deducting taxes at source upon customers' direct tax payments, arguing that the onus for tax compliance should rest with the taxpayer.
They recommended simplifying the tax deduction process to reduce the complexity and administrative burden faced by businesses.
Dr Salehuddin, however, assured the delegation that the government was committed to addressing these concerns.
He emphasised that the government and the FICCI must continue working together to create a more favourable business environment that encourages investment and drives economic growth in Bangladesh.
FICCI members, including Naser Ezaz Bijoy, Ala Uddin Ahmad, Najith Meewanage, Md Miarul Haque, Faisal Ahmed Chowdhury, Rubaba Dowla, Sumitava Basu and MHM Fairoz, Citi NA CEO Moinul Huq, PricewaterhouseCoopers (PwC) Bangladesh country managing partner Shams Zaman and HSBC acting CEO Bashar Mustafa Tareq attended the meeting.
Commerce secretary Md Selim Uddin was also present at the meeting, underscoring the importance of such discussions further.
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