PMO issues directives to support women investors

The Prime Minister's Office (PMO) has issued a set of 12-point directives to increase the share of women investors in the national economy by offering necessary fiscal, administrative, and regulatory incentives.

It said the 15 per cent value-added tax (VAT) rate should be lowered for women entrepreneurs, and suggested offering soft loan for availing duty-free benefit on import of raw materials under bonded warehouse facility by women investors.

Separate loan disbursement policy, access to the government's 'khas' land, easy-term and collateral-free loan, grace period of 18 months for repayment of loan, and separate Economic Zones (EZs) for women entrepreneurs are among the major directives, sent to the different government departments and ministries concerned.

The suggestions came following a recent meeting at the Bangladesh Investment Development Authority (BIDA), where a number of women entrepreneurs, involved in supply and backward linkage industries, talked about their barriers.

Some 13 ministries and departments have been directed to implement the recommendations and inform the PMO after taking necessary steps in this regard.

On fiscal measures, the PMO directed to offer special incentives to the women entrepreneurs for payment of income tax, VAT and customs duty, allow them to import raw materials at reduced rates of duties and taxes, and give duty benefit to encourage setting up industries to produce equipments for special children.

The PMO also instructed to increase duties and taxes on imported goods in a bid to curb import of foreign products that women entrepreneurs are now producing locally.

Ensuring intellectual property rights in the information and communication technology (ICT) sector also came into focus.

As a whole, capacity building and skill development trainings in different sectors, including advanced technology, online marketing, market access and business management have been prioritised among the PMO's directives.

Campaign for developing local small and medium-sized enterprise (SME) brands, ease process of getting cash incentives, motivational programmes, women-friendly banking system, and separate national forum for women entrepreneurs are also included among the directives.

The PMO also instructed to give 'industry' status to 'beautification business', and offer reduced tax rate on import of beauty products to avoid health hazards using substandard products.

To ensure equity, it suggested reviewing the existing policies on women entrepreneurs and recasting the related policies.

A baseline survey is needed to trace the grassroots-level women entrepreneurs and include them in the mainstream economy, the PMO opined.

Currently, there is no data on the number of women entrepreneurs in the country. Also, many of the economic activities of the women entrepreneurs are not included in the mainstream economy.

The PMO suggested that women entrepreneurs should get collateral-free loan up to Tk 5.0 million, and easy-term loan at 5.0 per cent interest rate with a grace period of repayment up to 18 months.

It said businesses run by the women entrepreneurs should not face inspection by the different government agencies without prior notice, as it may cause unusual harassment.

Besides, mindset of the government's different licence issuing entities should be entrepreneur-friendly.

Developing agriculture firms (making caps with date palm leaf etc), and bio-gas and organic fertiliser production units by the women entrepreneurs in the country's northern region have to be facilitated, it noted.

The ministries of finance, commerce, agriculture, land, industries, women and children affairs, fisheries and livestock, home and ICT, National Board of Revenue, Bangladesh Economic Zones Authority (BEZA), National Skill Development Authority, Local Government Department, and SME Foundation are the designated entities to implement the directives.

Real Estate and Housing Association of Bangladesh (REHAB) director Touhida Sultana said the women entrepreneurs face some unusual threats in doing businesses for some vested quarters than their male counterparts.

She also said compliance in businesses is the main power to get market access and expand businesses irrespective of owned by male or female.