High-level decisions needed to execute Japanese investors’ proposals, say officials
After a meeting with Japanese businessmen on Sunday, government agencies told The Business Standard that they are facing various difficulties in implementing the proposals of Japanese businessmen and these issues can be resolved only with policy decisions from the government high-up.
Officials who participated at the Bangladesh-Japan Joint Public-Private Economic Dialogue said the customs process at Hazrat Shahjalal International Airport and Chattogram port will be expedited to encourage foreign investors.
Other measures include providing cash assistance against export by full-fledged foreign and joint venture companies operating inside export processing zones.
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The meeting, aimed at strengthening bilateral relations and enhancing economic and development cooperation between Japan and Bangladesh, was held at the Prime Minister's Office on Sunday. It was chaired by the PM's Principal Secretary Ahmed Kaikaus.
Top officials from the finance ministry, commerce ministry, the Bangladesh Bank, National Board of Revenue (NBR), Chittagong Port Authority, Bangladesh Investment Development Authority (Bida), Bepza and Japanese investors doing business in Bangladesh also attended the meeting.
Japanese investors have made several proposals for companies operating in the EPZs, including non-issuance of bond licenses and withdrawal of VAT at the production stage, said people familiar with the discussion.
Asked what was decided at the meeting on NBR issues, Customs Policy Member Syed Golam Kibria, told TBS, "Giving additional benefits only to EPZ companies will create inequality. So, it requires a decision by the government in this regard."
Meanwhile, Sanjoy Kumar Chowdhury, member, Investment Ecosystem Wing of Bida, said two Bida-related issues came up in the meeting.
"Following the Japanese investors' proposal, we offered transfer of up to 6% of the C&F value of imported machinery for royalty and technical fees before going into commercial operation. But the Japanese want the rate to be increased further," he said.
He also said the PM's principal secretary has asked to ensure that the Japanese can use the prescribed 6% transfer offer. He, however, instructed Bida to examine whether it could be further increased and whether it would have a positive impact on Bangladesh's investment and exports.
"We have finalised a policy incorporating the proposals of Japanese investors on various issues, including the establishment of a branch office," he said.
The principal secretary has asked to send the policy to the Prime Minister's Office immediately.
The Prime Minister's Office also organised a similar dialogue last year to attract Japanese investment in Bangladesh. Only three of the proposals put forward by the Japanese at that time have been implemented so far.
