Boost Investment, Reduce Taxes: Why Confidence Remains Elusive

Syed Nasim Manzur, managing director of Apex Footwear, has called for significant reforms to Bangladesh’s tax structure to stimulate private sector growth and attract fresh investment.

He argued that Bangladesh’s current corporate tax rate of 27.5% is higher than that of many competing economies in the region. To enhance the country’s investment appeal, he suggested lowering the rate to 20%, in line with countries such as Vietnam.

According to Manzur, however, the primary concern for investors is not the tax rate itself but the uncertainty surrounding policies and the complexity of administrative procedures. Frequent revisions to policies and tax regulations make long-term business planning difficult, he said, stressing the need for a stable and predictable tax framework that remains unchanged for at least three years.

Pointing to shortcomings in the country’s trade and supply chain infrastructure, he criticized airport warehouse management, saying the absence of modern storage facilities leads to the annual loss of raw materials and goods worth hundreds of millions of dollars, causing substantial damage to the export and industrial sectors.

Manzur also underscored the importance of modernizing tax administration. He said adopting digital systems and risk-based audits in place of conventional methods would improve tax collection efficiency while reducing unnecessary harassment of businesses.

Expressing concern over the healthcare sector, he noted that nearly 74% of healthcare spending in Bangladesh comes directly from citizens’ pockets, a burden he described as alarming for a developing economy.

To strengthen healthcare services and expand capacity, he recommended initiatives to attract greater foreign investment into the sector.