EPZs seek tax exemption similar as EZs

Industries at the Export Processing Zones (EPZs) have sought tax exemption and non-financial incentive similar to the investors at the Economic Zones (EZs) to attract more foreign investment and increase exports, reports BSS.

The Bangladesh Export Processing Zones Authority (BEPZA) has sent a letter to the Chairman of National Board of Revenue (NBR) on September 4 seeking such facilities.

The BEPZA said Bangladesh has been lagging behind in attracting the foreign investment for the unequal and ambivalence facilities for the foreigners.

“If the tax exemption and other facilities are made similar as EZs, investment, exports and employment generation would be increased at Mongla, Uttara, Ishwardi and other EPZs,” added the BEPZA.

The letter, signed by BEPZA Executive Chairman Major General S M Salauddin Islam, said the industrial units set up at the EPZs till December 31, 2011 are being provided a 10-year basis tax exemption while the industrial units set up in January 1, 2012 or later at Dhaka, Chattogram, Karnaphuly, Cumilla and Adamjee EPZs are being given 100 percent tax exemption for first and second year, 50 percent for next two years (third and fourth) and 25 percent for the fifth year.

In addition, the industrial units in Ishwardi, Uttara and Mongla EPZs are getting 100 percent tax exemption in the first three years while 50 percent for next three years and 25 percent for the next one year.

Besides, the industrial units being set up at EZs under the Bangladesh Economic Zones Authority (BEZA) are being given 10 years tax exemption. They are enjoying 100 percent exemption for the first three years while 80 percent for the fourth year, 70 percent for the fifth year, 60 percent for the sixth year, 50 percent for the seventh year, 40 percent for the eighth year, 30 percent for the ninth year and 20 percent for the tenth year.

An NBR official told BSS that they want more expansion of private investment and export in private sector but at the same time revenue collection of government is needed to be increased. “So, the NBR would take decision considering all the aspects,” he added.