A high-level bilateral meeting was held between Bangladesh
Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Economic
Zones Investors Association (BEZIA) at the BGMEA Complex in Uttara today
(Monday) to increase the pace of new investments in economic zones and resolve
existing infrastructural and policy problems of investors.
The BEZIA delegation was led by the organization’s President,
M. A. Jabbar. The delegation was also attended by BEZIA Vice President, Md.
Halimuzzaman, Director, Delwar H. Titu, CEO Dr. Aparup Chowdhury and Member,
Md. Mustafizur Rahman. On behalf of BGMEA, the meeting was led by BGMEA
President, Mahmud Hasan Khan. BGMEA Vice
President (Finance) Mizanur Rahman also participated in the discussion.
The meeting had a fruitful discussion on the current
progress of the plots allocated in favor of the 5 government economic zones for
full implementation in the first phase as part of the government’s short-term
priorities and various policy obstacles for investors.
BEZIA Chairman MA Jabbar said that many entrepreneurs are
suffering from lack of confidence due to slow infrastructure and utility
facilities despite paying huge amounts for the plots. As a result, only 27
companies are in production on 39,000 acres of land in the mentioned 5 zones.
Only 37% of the total allocated land is currently in operation. Emphasis was
placed on joint lobbying to overcome the crisis of uninterrupted gas and
industrial water and against imposing additional service charges before the
factories are fully operational.
Both the organizations agreed to jointly highlight some
key policy issues at the highest level of the government to ensure an
investment-friendly environment.
The meeting strongly demanded that the service charge imposed
on utility bills used should be completely waived until the promised
uninterrupted utility supply is ensured. In order to maintain equality with
institutions outside the economic zone, it is very important to provide
sector-wise equivalent cash incentives for investors in the zoned units. In
addition, the obligation to pay VAT at the rate of 15% at both the master lease
holder and later sub-lease recipients, i.e., double taxation, was removed and
VAT on lease tariffs was completely waived. Special emphasis was placed on
allowing domestic bond-licensed exporters to conduct concealed export
activities without EXP and EP to prevent administrative complications and
additional time wastage in concealed exports.
In addition, the meeting emphasized on making 99-year
lease mutation bankable and implementing one-stop service.
In the discussion, BEZIA Chairman M. A. Jabbar
specifically mentioned that BGMEA has 41 unit investors in the National Special
Economic Zone located in Mirsarai Upazila of Chittagong. As a result, there is
an opportunity and rationale for BGMEA and Bezia to work together on various
national and policy-related issues of interest in the garment sector. A Chairman
M. A. Jabbar sincerely called for including BGMEA representatives in the Board
of Directors of Bezia in order to ensure sustainable industrialization in the
economic zone and further strengthen the mutual coordination between both organizations.
BGMEA President Mahmud Hasan Khan welcomed the proposal and expressed his
agreement to it and promised to nominate a qualified representative on behalf
of BGMEA as soon as possible.
At the conclusion of the meeting, top leaders of the two organizations expressed strong optimism that this far-reaching joint policy advocacy by BGMEA and BEZA will encourage the Bangladesh Economic Zone Authority (BEZA) to take swift and groundbreaking steps to address infrastructure challenges and policy complexities.
