BEZIA calls for tax holiday reinstatement, zero duty on capital machinery

Bangladesh Economic Zones Investors' Association (BEZIA) has called on the government to reinstate a 10-year tax holiday and restore zero duty on imports of capital machinery and construction materials for zone development, saying the current budget falls short of investor expectations despite its broadly positive direction.

The demands came at BEZIA's executive committee meeting on June 16, presided over by President MA Jabbar, according to a statement.

The association said the national budget for FY2026-27 was "directionally positive", noting that the finance minister had identified 10 priority sectors and introduced time-bound measures on company registration, government approvals and service delivery.

It cited 24-hour company registration, profit repatriation facilities, digital e-loans of up to Tk 50,000 and VAT exemptions for nine years for startups as welcome steps.

However, BEZIA pressed for deeper relief for zone enterprises. It demanded exemption from the turnover-based minimum tax for the first five to seven years of commercial operation, a full refund of excess tax deducted at source within specified timelines, and the continuation of interest exemptions for loans tied to zone capital expenditure.

On bonded warehouse access, BEZIA recommended extending the facility to all export sectors inside and outside economic zones. It said the benefits proposed for Free Trade Zones should not exceed what existing economic zone investors already receive.