Foreign or local investment being made in the country is not satisfactory due to the discrimination in providing stimulation for the investors.According to sources, Bangladesh is trying to attract the foreigners by ensuring various facilities to invest here while different obstacles impede the domestic investment. As a result, investment at the stipulated rate is not being made either by the local or the foreign investors.To encourage foreign investment in Bangladesh, the opportunity is ensured to take back cent percent capital with profit. Tax exemption is assured for five years if foreign investment is made in Dhaka and Chittagong and for seven years if it is done outside of these two districts. Various policy supports are guaranteed for foreign investors at the import-export level. For procuring machineries to set up new industry, depreciation facility is granted at the rate of 50 percent in first year and 30 percent in the second and third year. Duty-free import of machinery parts and separate bonded warehouse facilities are given if 80 percent of the commodities produced is exported. Besides, there are facilities for 90 percent loan against the L/Cs and borrowing from export promotion fund at a lower rate of interest. The cent percent export-oriented industries are also allowed to float on the markets up to 20 percent of products at the same rate of duty. Cash incentives from 5 to 20 percent are being given for some specific items.But, according to entrepreneurs, the situation in case of the local businessmen is quite opposite. There is no tax exemption. Some 35 to 40 percent of the profit has to be paid as corporate tax. Business expansion or new investment is not possible on payment of such huge amount of tax. Although, there is cash incentive for some export-oriented sector, no such facility exists in the import-alternate commodity production sector. Former finance advisor to the caretaker government Dr AB Mirza Azizul Islam said, “The scope of employment generation is created if investment is made in the country. The GDP growth also goes up if production increases. In every country, the policy of giving priority to the local investors is followed. Because, rise in local investment creates no risk while investment by the foreigners makes it risky. If the foreign investor withdraws his/her capital, disorder may erupt in the economy of the country.” FBCCI vice president and BGMEA president Shafiul Islam Mohiuddin emphasised resolving the problems of local investors instead of attracting the foreign investors offering various incentives. He said, “We are achieving GDP growth at the rate of over six percent. Our economy is stable, yet investment is not being made. We have to ensure one stop service free of bribe and hassle. If the local investors are happy with making investment, staging road show for foreign investment will not be required any more.”Terming high interest rate of bank loan a major obstacle to investment, the executive director of Policy Research Institute Ahsan H Mansoor said, “The difference between loan and deposit in Bangladesh is six percent. This should be within two percent and not more than three percent under any circumstances. In the economic sector of Bangladesh, loan default, irregularity and political influence in allocation of loan are responsible for high rate of interest. And this has brought about a disaster in the investment environment. There is no alternative to bringing down the interest rate to one digit for attracting the investors.”
