The high powered government committee has given its nod to several proposals, including reducing the existing VAT rate from 15% to 12% to foreign investors.

In order to attract foreign investments moving out of China, the committee formed by the Prime Minister’s Office supported the tax rebate idea.

The committee also considering reduce the corporate tax rate from 35% to 25% to keep up with the rival countries, and providing a maximum of 10-year tax holiday.

The committee also recommended increasing the 100 per cent tax holiday facility for industrial establishments that are in operation and also under construction in the economic zone from the current three years to four years.

The committee chaired by Principal Secretary to the Prime Minister’s Office Dr Ahmad Kaikaus has discussed these in its Wednesday’s meeting but the final decision was not made.

It was formed to formulate an overall strategy and future plans to attract foreign investments and to make recommendations.

Kaikaus has asked the Bangladesh Bank, the National Board of Revenue (NBR), and the finance ministry to submit recommendations to the Prime Minister’s Office soon to finalise the incentive package.