Bangladesh Investment Development Authority (BIDA) is drafting a new incentive scheme to reward Bangladeshi individuals, particularly non-resident Bangladeshis (NRBs), who directly contribute to attracting Foreign Direct Investment (FDI).
Key points of the proposal:
Objective: To democratize FDI promotion by recognizing individual contributions in bringing in new equity investments.
Eligibility: Only individuals (not institutions) who play an independent, significant role in securing FDI of at least $5 million will qualify. The incentive excludes investments from existing shareholders or related parties.
Incentive Amount: A 1% tax-free reward has been proposed, similar in concept to the remittance incentive scheme.
Verification Process: Applicants must provide documentation, identity proof, and an affidavit confirming no conflict of interest. A high-level review committee—including BIDA, Bangladesh Bank, NBR, and Finance Ministry officials—will assess applications.
Disbursement: Approved incentives will be paid in local currency through the applicant’s bank account.
Implementation Timeline: The initiative is planned for launch in the upcoming fiscal year, with BIDA working on a Standard Operating Procedure (SOP) and creating a dedicated fund named “FDI Recognition.”
The initiative has received in-principle approval from the BIDA Governing Board, which met in April after a gap of four years. Regular quarterly meetings are now planned to ensure faster decision-making.
This move aligns with Bangladesh’s broader strategy to strengthen its investment pipeline and boost PPP-based infrastructure projects, as reflected in the FY2025-26 national budget.
Comment here