An Analysis of Tax Incentives to Attract FDI in Bangladesh: An Empirical Study

The purpose of the study is to understand whether it is still viable to use tax incentives to attract foreign direct investment (FDI) considering their effectiveness and costs to the country, and if not, what should be the alternative, effective, and viable means of promoting the vital FDI inflow. The study investigated various incentives provided by BOI, and other relevant sources available as secondary sources. However, the multinational enterprises (MNEs) are not attracting for investment in Bangladesh always with tax incentives and there are alternative means of attracting FDI such as direct financial grants, subsidies loan guarantees, etc. This paper focuses on tax incentives and the debate against the effectiveness and efficiency in attracting FDI.