Activities & NewsPM Tarique Zia Meets Tea Industry Leaders; VAT Cut, Tk 2,000cr Stimulus Fund and Export Expansion Discussed
Hon’ble Prime Minister Tarique Zia held a courtesy meeting today with leaders of various organizations representing Bangladesh’s tea industry to discuss the sector’s current challenges, development prospects and policy priorities.
The meeting was attended by the Hon’ble Finance Minister, Commerce Minister, Land Minister and Energy Adviser, along with the Finance Secretary, Commerce Secretary, Land Secretary and Energy Secretary.
Representatives of the Bangladesh Bought Leaf Tea Factory Owners Association, Bangladesh Tea Association, and Small Tea Garden Owners Association were present at the meeting.
VAT Cut
President of the Bangladesh Bought Leaf Tea Factory Owners Association, Mr. Md. Niaz Ali Chisty, presented an overview of the current situation of the country’s tea industry. He pointed out that the tea sector is currently subject to 15% Value Added Tax (VAT), while VAT or similar taxes in many competing tea-producing countries are reportedly within the range of 1% to 5%. This relatively high tax burden is increasing production costs and adversely affecting the competitiveness of Bangladesh’s tea industry in the international market.
Bangladesh
15%
Value Added Tax (VAT)
Competing tea-producing countries
1% to 5%
Value Added Tax (VAT)
Mr. Chisty strongly urged the government to reduce VAT on the tea sector from 15% to 5% in order to promote the development of the industry and enhance its competitiveness. He said that implementing this measure would reduce production costs, strengthen the tea industry and provide significant benefits to small and medium-sized entrepreneurs.
Export Expansion
He also emphasized the need to increase Bangladesh’s tea exports to Pakistan, describing Pakistan as a highly promising market for Bangladeshi tea. He noted that, with appropriate government policy support and commercial initiatives, Bangladesh could significantly expand its tea exports to Pakistan. This would help increase foreign exchange earnings and contribute to the expansion of bilateral trade between Bangladesh and Pakistan.
Renewable Energy
Speaking on behalf of the Bought Leaf Tea Factory Owners Association, its Secretary General Mr. Faizul Islam highlighted the potential of renewable energy in the tea industry. He said that solar panels could be installed on the rooftops of tea factories as well as on unused land within tea gardens to generate clean and cost-effective energy. He requested government financial assistance and appropriate policy support to facilitate the adoption of solar energy across the tea sector.
Tk 2,000cr Stimulus Fund
Meanwhile, the Bangladesh Tea Association and the Small Tea Garden Owners Association called for the establishment of a Tk 2,000 crore (BDT 20 billion) special stimulus loan fund through the banking sector. The proposed fund would support the overall development, rehabilitation and modernization of the tea industry and enable tea gardens and related entrepreneurs to access financing on easier and more affordable terms.
At the conclusion of the meeting, the Hon’ble Prime Minister listened attentively to the issues and proposals raised by the tea industry leaders and assured them of the government’s fullest cooperation for the development of the sector.
The Prime Minister expressed a positive position on the proposal to reduce VAT on the tea industry from 15% and directed the concerned ministries to take necessary steps for its early implementation.
He also emphasized that the government would continue to provide necessary support for expanding tea exports, facilitating financial assistance for tea entrepreneurs, promoting renewable energy and ensuring the sustainable development and long-term growth of Bangladesh’s tea industry.
