Govt sets land tariff for economic zones

The governing body of Bangladesh Economic Zones Authority yesterday fixed the land tariff of its economic zones by slashing the proposed leasing and renting fees by 25 percent.

For example, $0.8 was proposed as leasing fee for per square metre developed land in an economic zone, but the governing body finalised it at $0.6 by reducing 25 percent from the recommended tariff.

The land tariff, however, varies depending on the types of infrastructure -- developed, undeveloped and specialised.

The service charge has been set at 5 percent, instead of proposed 10 percent, of the amount of any utility bills such as gas, electricity, water, recycling, purification and effluent treatment. It is necessary to fix the tariff for allocating lands in the economic zones to entrepreneurs for setting up industrial units.

The meeting chaired by Prime Minister Sheikh Hasina also discussed a draft policy for creating Economic Zones Welfare Fund and asked Beza to place the policy again after scrutinising it, according to a press statement.

The governing body also approved a draft on One Stop Service Act, 2016 and decided to send it to the cabinet for approval.

Apart from Beza, the act will also be applicable for Bangladesh Investment Development Authority, Hi-Tech Park, and Bangladesh Export Processing Zones Authority, according to the statement.

An economic zone is a designated area in a country with special economic regulations that differ from the rest of the country.

An entrepreneur can enjoy various benefits including tax incentives from the authorities by setting up an industrial unit in an economic zone.

Beza plans to set up 100 economic zones by 2030, which will create jobs for one crore people and produce goods and services worth $40 billion. It is setting up four economic zones in the public sector, while it has awarded two final licences in the private sector.

Beza also awarded prequalification licences to 10 local private companies so far to set up 11 other economic zones: one each to AK Khan and Company, Bay Group, Aman Group, Maisha Group, United Group, Unique Group, Akij Group and two to Bashundhara Group and Meghna Group.