The Bangladesh Economic Zones Investors’ Association (BEZIA) has urged the government to reinstate a 10-year tax holiday and restore zero-duty facilities on the import of capital machinery and construction materials used for economic zone development, arguing that the current national budget does not fully meet investor expectations.
The demands were raised at BEZIA’s executive committee meeting held on 16 June, chaired by the association’s President MA Jabbar, according to an official statement. While the association acknowledged that the proposed FY2026-27 budget is broadly “directionally positive,” it said stronger fiscal support is needed to sustain investment momentum in economic zones.
BEZIA noted several positive measures in the budget, including the identification of 10 priority sectors and initiatives aimed at improving governance efficiency. These include faster company registration processes, streamlined government approvals, and improved service delivery mechanisms.
It also welcomed provisions such as 24-hour company registration, facilities for profit repatriation, digital e-loans of up to Tk 50,000, and VAT exemptions for startups for up to nine years.
However, the association stressed that more incentives are necessary for zone-based enterprises. It called for exemption from turnover-based minimum tax for the first five to seven years of commercial operation, faster and full refunds of excess tax deducted at source, and continued interest exemptions on loans used for capital expenditure in economic zones.
On bonded warehouse facilities, BEZIA recommended extending access to all export-oriented sectors inside and outside economic zones. It also suggested that any incentives proposed for Free Trade Zones should not exceed those already available to existing economic zone investors.
The association maintained that consistent and competitive policy support is essential to attract long-term foreign and local investment.
