The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed willingness to take over plots from the Bangladesh Economic Zones Authority (BEZA) if VAT exemption is ensured for 100 percent export-oriented industries.
The association’s leaders said that to promote sustainable development in the export sector, the government must adopt and sustain more industry-friendly fiscal policies.
These views were expressed at the first meeting of BGMEA’s Standing Committee on Industrial Zones at the association’s Chattogram office on October 12.
Speakers at the meeting noted that existing government policy already provides VAT exemption on rent for factories that are 100% export-oriented. Since the land in the National Special Economic Zone (NSEZ) in Mirsarai has been allocated to the BGMEA on a 50-year lease for such factories, the leaders said VAT should not be applicable in this case. They pointed out that VAT payment provisions are meant only for local or partially export-oriented industries.
The BGMEA leaders stressed that continuing VAT exemption for fully export-oriented industries would encourage new investments, create employment, and help expedite industrial setup and production activities.
They also thanked Bangladesh Investment Development Authority (BIDA) Chairman Ashiq Chowdhury for initiating the establishment of the BGMEA Garment Village in the Mirsarai economic zone as a “pilot project” under a one-stop service facility.
According to the meeting, 321 acres of land have already been leased in the name of 59 BGMEA member companies in the NSEZ. Around 85 percent of infrastructural work – including roads, drainage systems, box culverts and power connections – has already been completed. However, due to certain preparatory complications, the process of taking over the allotted plots has not yet been finalized.
The meeting also proposed several measures to boost industrial growth, including providing low-cost financing facilities for investment, allowing mutual transfer of plots among BGMEA member factories, and relocating small and medium garment factories from Chattogram city to compliance-friendly small industrial zones.
The meeting was presided over by Mohsin Ahmed, chairman of the standing committee on industrial zones. Among others present were BGMEA Director and Director-in-Charge of the Committee MDM Mohiuddin Chowdhury, directors Md Saif Ullah Mansur and Rakibul Alam Chowdhury, Co-Chairman Mohammad Nakim Uddin, and members Shaker Ahmed, Ahmed Nur Faisal, Mohammad Qamar Uddin, and Bijoy Shekhar Das.
