10 more economic zones get the nod

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Bangladesh Economic Zones Authority (Beza) has approved establishing 10 more monetary zones, taking the tally of such areas to 101, out which work on 28 are currently underway.

The approval came at a virtual meeting of the Beza Governing Board yesterday with its chairperson, Prime Minister Sheikh Hasina, in the chair through videoconferencing from her Gono Bhaban residence.

The brand new zones are Nawabganj Economic Zone, Nawabganj; Tangail Economic Zone, Bhuapur; Sapahar Economic Zone, Sapahar, Naogaon; Dinajpur Economic Zone, Dinajpur Sadar; Noakhali Economic Zone, Companiganj; Sandwip Economic Zone, Chattogramme; Sunamganj Economic Zone, Chhatak, Sunamganj; Pabna Economic Zone, Bera, Pabna; Charmegha Economic Zone, Hijla, Barisal; and Manikganj Economic Zone, Shibalaya, Manikganj.

Beza officials said now they would conduct feasibility studies and start acquiring necessary land for establishing the zones. 

Prime Minister Sheikh Hasina asked Beza to promote small entrepreneurs, particularly the young generation, alongside attracting foreign investment, reports the UNB.

"It (Beza) will need to work in a way so that foreign investment occurs one hand and local persons can invest on the other, or we are able to promote small investors. Which means we must attract and promote our young generation."

The young generation shouldn't only follow jobs as they could do something themselves such as taking on ventures.

"We must work keeping eyes on these."

Hasina said the federal government was setting up special economic zones in the united states to attract investment, create jobs and protect arable and forest lands.

"There is no doubt our economy can be an agriculture-dependent one but we are in need of industrialisation simultaneously. Because, no country can make progress without industrialisation."

The premier said the government has been on all-out efforts to gear up industrialisation to create jobs, enhance production, raising the purchasing power of individuals, fulfilling local demands and boosting exports.

"While choosing industrialisation, we must keep it at heart that arable lands must be protected to make sure food security for the growing population in a small country like Bangladesh."

The prime minister said if 100 monetary zones could possibly be established as per the prospective of the government, poverty will be alleviated in the country, production and export income would increase and the foundation of the country's economy will be strengthened.

The meeting also made a decision to provide export subsidy or cash incentive at the same rate as non-economic zone companies to all or any categories of agro-processing industries established in financial zones focusing export.

The prime minister directed all agencies concerned to take immediate steps to formulate a thorough strategy and future action plan to attract investors to Bangladesh within the trend of global relocations in the wake of the Covid-19 pandemic.

Other governing body members linked from the Prime Minister's Office and the Cabinet Division.

Meanwhile, Bangladesh Economic Zones Investors Association (Bezia) has sought intervention from the Prime Minister's Office (PMO) to handle some hurdles to investment in the country's monetary zones.

Potential investors were recently blindsided by the implementation of a 15 % value-added tax (VAT) imposed on land lease at economical zones.

Besides, investors cannot attain loans against land taken on the rent due to unfavourable conditions of leasing policies, Bezia said in a statement.

"Our confidence and expectations were shattered whenever we unexpectedly received letters from the Bangladesh Economic Zones Authority (BEZA) on the VAT issue," browse the statement.

This increase their outlay, they added.

"Furthermore, we are keen to take pleasure from a tax holiday as provided for commercial units whatever they produce within the economic zones."

Bezia also said investors were facing indefinite delays in the handover processes for leased lands at monetary zones and were also in uncertainty about if the infrastructure and facilities will be made available there as promised by Beza.

This consists of the construction of port facilities at Bangabandhu Sheikh Mujib Shilpa Nagar in Mirsarai, Chattogram, a project which includes already far exceeded its completion deadline.

While investors have been exempted from VAT charges and received a tax holiday for some period, the National Board of Revenue recently issued a notice declaring that the 15 % VAT would be imposed on land leasing from now on, according to Bezia.

The platform also said banks were uninterested in providing loans for investment in economic zones using leasing agreements as collateral since the potential borrowers didn't own the land. 
Source: https://www.thedailystar.net

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