Tax waiver for HNIs in ins, other areas sought

Venture Capital and Private Equity Association of Bangladesh (VCPEAB) has sought policy support to promote alternative investment fund industry.

"Investment by high net worth individuals (HNI) in Alternative Investment Fund should be given tax exemptions for investments in insurance and other types of investment instruments. Tax rebate should also be given to the investors for investment from the provident funds as well," Zia U. Ahmed, Vice Chairman of VCPEAB, said during a meeting with Md. Sirazul Islam, Executive Chairman, Bangladesh Investment Development Authority (BIDA) at the latter's office in the capital on Monday.

Shameem Ahsan, Chairman of VCPEAB, and General Partner of Pegasus Tech Ventures (former Fenox Venture Capital), led the VCPEAB delegation, according to a statement.

During the meeting, they discussed different initiatives related to fostering foreign investment in information technology and other sectors by organising roadshows and investment summits.

VCPEAB also requested to provide policy support for the growth of venture capital and private equity industry. The delegation emphasized that venture capital and private equity investments can directly contribute to boost foreign trade, local innovation, export and help create home-grown import substitutes.

Nabhas Chandra Mandal (Additional Secretary), Executive Member-3, BIDA, and Shawkat Hossain, General Secretary, VCPEAB, Consultant, Huda Vasi Chowdhury & Co, former Managing Director, BD Venture Ltd. were also present in the discussion.

Shawkat Hossain, General Secretary, VCPEAB said, "Venture capital will support entrepreneurs, who will create jobs in the local market. Bangladesh needs these upcoming entrepreneurs to create many employment opportunities."

Shameem Ahsan, Chairman, VCPEAB, said, "To help meet the investment needs of the local startups, foreign direct investment (FDI) flows must increase substantially. From VCPEAB, we would like to jointly organize roadshows and investment summits with BIDA. These promotional activities can create awareness among foreign investors of the local startup success stories, infrastructural capacity, and skilled human resources. This will help fund local startup businesses and services, which can boost export and bring new import substitutes to the country."

The BIDA Executive Chairman said, "BIDA has taken an initiative to create 24,000 new and skilled entrepreneurs within next 2 years under its "Entrepreneurship Creation and Skill Development' project where we welcome VCPEAB to provide mentorship and fundraising support to the trainees. BIDA will work with VCPEAB in building capacities to foster investments and encourage home-grown innovation and entrepreneurship."

VCPEAB works to strengthen the local startups and Venture Capital and Private Equity firms and help them become much more visible and dominant enough to compete in this era of global challenges and competition. Other than the local members, VCPEAB is working closely with many local and foreign venture capital companies to promote investments in Bangladesh.