The government has decided to establish Export Processing Zones (EPZs) in Barishal and Lalmonirhat to attract foreign investment, increase exports, and create employment opportunities.

The Cabinet Division has already sent letters to the Secretary of the Prime Minister's Office and other relevant authorities to begin implementing the EPZ projects.

During the DC Conference held in May, several DCs highlighted the need for new EPZs and economic zones. 

The concerned DCs have been instructed to submit progress reports on the implementation of these plans to the Cabinet Division.

These directives were outlined in a letter sent by the Cabinet Division to the Prime Minister’s Office and relevant authorities.

Officials from the Cabinet Division told BSS that, out of approximately 1,729 proposals received from various districts, feasible proposals were selected and presented to the Prime Minister and relevant stakeholders after several rounds of meetings with ministries and implementing agencies. 

The Prime Minister's Office has decided to implement six key decisions in three phases—short-term (within one year), medium-term (within three years), and long-term (within five years). 

Among these decisions are- the establishment of EPZs in Barishal and Lalmonirhat and economic zones in Gazipur, Barguna, and Pirojpur.

Bangladesh currently has eight government-owned EPZs under the Bangladesh Export Processing Zones Authority (BEPZA): Dhaka, Chattogram, Mongla, Cumilla, Ishwardi, Karnaphuli, Adamjee, and Uttara EPZs. 

The primary purpose of EPZs is to facilitate the duty-free import of raw materials and the direct export of manufactured goods.

Mohammad Khorshed Alam Khan, a Joint Secretary of the Cabinet Division, told BSS that numerous proposals are submitted each year during the DC Conference, and the government adopts short-, medium-, and long-term plans based on priority. 

He said that work has already begun on implementing several important decisions this year and that letters have been sent to the relevant ministries.

In the presence of the Prime Minister, ministers, secretaries, and implementing authorities, the Gazipur DC proposed establishing an economic zone to relocate industries to a designated area. 

The proposal argued that planned industrialization would reduce waste and environmental pollution, protect agricultural land, increase domestic and foreign investment, and provide entrepreneurs with easier access to industrial sites. 

The Barishal DC proposed establishing an EPZ in Barishal, arguing that it would create employment opportunities locally, reduce migration to Dhaka and Chattogram for work, lower poverty, improve living standards, and benefit from direct road connectivity with Dhaka and proximity to Payra Port. 

The Barguna DC proposed an economic zone in the coastal district, noting that its location near Payra Port could make it a strategic center for international trade. 

The proposal also highlighted the potential for marine resource processing and preservation, along with integrated development of the fisheries, agriculture, industry, and tourism sectors.

The Pirojpur DC proposed establishing an economic zone in Pirojpur Sadar Upazila, citing the district’s strong road links with Dhaka, Khulna, and Barishal, as well as waterway connections to Chattogram, Mongla, and Payra seaports. 

These links would facilitate the transportation of raw materials and finished products. 

The proposal further argued that easy access to raw materials and labor would attract domestic and foreign investment, create jobs through agriculture-and fisheries-based industries, and enable exports after meeting domestic demand.

The Lalmonirhat DC proposed an EPZ, arguing that it would generate industrial and employment opportunities, reduce poverty, improve living standards, and support agro-based industries due to the abundance of rice, potatoes, maize, and other crops. 

The presence of Burimari Land Port and Bangladesh Railway facilities would also simplify imports and exports.

Md. Mamun, Deputy Secretary of the Field Administration Wing of the Cabinet Division, told BSS that BG Press is preparing a publication containing the development initiatives discussed during the DC Conference. Copies will be distributed to relevant stakeholders. 

He added that all ministry secretaries have been informed of their responsibilities and instructed to submit monthly implementation progress reports to the Cabinet Division by the 10th of each month.

Meanwhile, Prime Minister Tarique Rahman discussed the government’s plans to restore economic discipline and attract foreign investment during a parliamentary session.

Responding to a written question from Cumilla-10 lawmaker Md. Mobashwer Alam Bhuiyan, the Prime Minister said there is no alternative to restoring economic discipline if the country is to achieve sustainable development. 

As part of this effort, the government has taken several groundbreaking measures through the Ministry of Commerce and other relevant agencies to simplify investment procedures and attract both domestic and foreign investors.

He said that the country's Export Policy has already been updated and that work is underway to revise the Import Policy Order 2026–2029 to facilitate easier market access for foreign investors.

Highlighting a major structural reform initiative aimed at reducing institutional complexities and improving service delivery, the Prime Minister said the government has taken steps to integrate the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), Public-Private Partnership Authority (PPPA), and Bangladesh Hi-Tech Park Authority into a unified framework to enhance efficiency and reduce bureaucratic delays.

END/BSS/ASA

Companies and organisations will be required to file tax returns on the income generated by employee welfare funds from the current fiscal year and pay a 27.5 percent tax on the earnings. 

The Income Tax Act 2023 incorporates the provision, lifting the tax exemption and amnesty on the compulsion to file returns for funds such as provident funds, gratuity funds and workers' profit participation funds maintained by the private sector.

The law, however, has exempted government-managed provident funds from taxation, raising questions.

TIM Nurul Kabir, executive director of the Foreign Investors' Chamber of Commerce & Industry, said there were many other avenues to collect tax.

"Employees benefit from provident funds after their retirement. So, the authority should not slap taxes on retirement benefit."

He said while levying the tax, the government has not treated provident funds of the private and public sectors equally.

"It is discriminatory," he said, adding that they would appeal to the tax authority for the withdrawal of the tax on income from provident funds.

Debabrata Roy Chowdhury, director for legal, regulatory and corporate affairs at Nestlé Bangladesh PLC, said the introduction of income tax on trust funds would lower the overall income from such schemes.

"This will have an adverse long-term impact on retired employees of private organisations."

Chowdhury urged the authority to address the issue in line with the spirit of the government's initiatives aimed at ensuring social security for private sector employees.

"The recent introduction of the universal pension scheme for private sector employees is a good example of that."

A senior official of the NBR, on condition of anonymity, said the income of government-managed provident funds was exempted in line with the Provident Fund Act 1925.

He said provident funds under the private sector had been historically exempted and there was no requirement to submit tax returns. As a result, it was unclear whether the funds were properly utilised.

"From now onwards, we will see proper disclosure."

The tax official said the contribution of payroll tax is about 3 percent of the total income tax although it should increase as the economy is growing.

Md Shahadat Hossain, a former president of the Institute of Chartered Accountants of Bangladesh, said income from investment in savings certificates, where people invest as a source of future earnings, is already taxed.

"From that perspective, the imposition of tax on provident and other employee welfare funds seems okay."

However, Towfiqul Islam Khan, senior research fellow at the Centre for Policy Dialogue, said social protection for private sector employees was low.

"Provident and other workers' welfare-related funds provide little social protection. The imposition of tax will increase inequality. But there can't be any discrimination in taxation between private and government provident funds."

Khan, citing the latest income tax law that replaced the Income Tax Ordinance 1984, said the NBR tried to find new avenues to increase tax collection and improve the nation's revenue-gross domestic product ratio, which is one of the lowest in the world.

"We can see the desperation of the tax authority to boost collection. This ultimately reveals the inability of the NBR to catch the tax evaders and illicit money makers."