Garment manufacturers and economic-zone investors have called for service charges to be waived until uninterrupted services are ensured, at a meeting between the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Economic Zones Investors Association (BEZIA) in Dhaka on Monday.

Only 27 companies are in production across 39,000 acres spanning five government economic zones, while just 37 percent of allocated land is currently operational, BEZIA president MA Jabbar said at the bilateral meeting with the BGMEA. Many investors have paid large sums for plots but are losing confidence because of slow infrastructure and service delivery, Jabbar said.

The two groups agreed to press the government jointly on several policy demands. Chief among them: full waiver of the service charge imposed by the Bangladesh Economic Zones Authority (BEZA) on utility bills until uninterrupted supply is guaranteed. They also called for cash incentives for zone-based units to be brought into line with those available to factories outside the zones, and for the removal of double taxation arising from the obligation to pay 15 percent VAT at both master-leaseholder and sub-lessee levels, including a full waiver of VAT on lease tariffs.

The meeting also called for permission to conduct deemed-export activities involving domestic bond-licence holders to prevent administrative complications and wasted time. Other demands included making 99-year lease mutations bankable and making the one-stop service effective.

Jabbar noted that 41 BGMEA investor units are located in the National Special Economic Zone at Mirsharai in Chattogram, creating scope and rationale for the two bodies to work together on national and policy issues affecting the garment sector. He proposed that BGMEA be given a seat on the BEZIA board of directors.

BGMEA President Mahmud Hasan Khan welcomed the proposal and agreed to the appointment, promising to nominate a qualified representative promptly.

The BGMEA side was led by its president, joined by vice-president (finance) Mijanur Rahman. The BEZIA delegation was led by MA Jabbar and included vice-president Md Halimuzzaman, director Delwar H Titu, chief executive Dr Aparupa Chowdhury and member Md Mustafizur Rahman.