Govt to give subsidy for CETP
The government will give subsidy to the foreign investors in the proposed special economic zones to encourage establishment of central effluent treatment plants, officials said.
Up to 50 per cent cost of the CETP would be provided by the government for ensuring safeguard of the country’s environment as part of the incentive package finalized by the Prime Minister’s Office.
Most of the incentives are linked to tax related waivers like 50 per cent rebate in registration fees for land, 20 per cent VAT exemption for payment of utility services etc.
The government has finalized the package after Japanese prime minister Shinzo Abe during his visit to Dhaka last month hinted at big investment by his country’s entrepreneurs in Bangladesh.
Abe wanted the government to improve the country’s environment for investment.
Besides, China, India, Myanmar, Vietnam, Malaysia and Thailand have also shown interest to make foreign direct investment worth US$ 1.6 billion in the country last year—much lower than the other South Asian and Southeast Asian countries received in the same year.
Five special economic zones on 8,816 acres of land at Mongla, Sirajganj, Gohira in Anwara Upazila, Mirsorai in Chittagong, and Moulvibazar in Sylhet have already been planned.
According to package, the government would allow 10-year tax holiday with 100 per cent tax waive in the first two years. The waiver will decrease gradually with 10 per cent in the last and final year.
The foreign investors will enjoy duty benefits for importing machinery and industrial raw materials. However, they will not receive such benefits in case those goods are available in the country.
They would be given VAT exemption for products they would purchase from the local market.
The foreign investors will be allowed to bring five per cent of a factory’s workforce from their own country. Foreigner workers having five years experience in the respective field would be allowed to enjoy 50 per cent income tax exemption.
Like the existing incentive of citizenship for foreign investors anywhere in the country the package for the SEZ will offer the same. A foreign investor could get the country’s citizenship if he invests half a million US dollar and residence visa for investing US$ 75,000.
The Japanese delegates wanted one-stop-service centre from the Board of Investment.
They said all the countries in Asia turned their respective investment promotion organisations into single window for obtaining all sorts of permissions or licences.
-With New Age input
