Non-EPZ firms can pay foreign staffers in dollars | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Non-EPZ firms can pay foreign staffers in dollars

Industry

Abul Kashem
13 September, 2020, 10:45 pm
Last modified: 14 September, 2020, 11:56 am

Related News

  • Pay your workers by 28 May or prepare for jail: Adviser Sakhawat to factory owners
  • Dollar drops as traders eye Trump tax bill, G7 currency talks
  • Students, professionals can pay overseas course fees in dollars via banks from now on
  • Shift to market-based exchange rate regime – what does it mean for the economy?
  • Global stocks, dollar surge as US, China agree 90-day tariff relief

Non-EPZ firms can pay foreign staffers in dollars

This initiative would create opportunities for foreign workers at EPZ and non-EPZ factories in Bangladesh

Abul Kashem
13 September, 2020, 10:45 pm
Last modified: 14 September, 2020, 11:56 am
Photo: Collected
Photo: Collected

The government is going to allow firms outside of the Export Processing Zone (EPZ) to pay their foreign employees in dollars. This has been a long-standing demand of companies and would make the revenue board better able to tax the foreigners.

The approval will enable the export oriented non-EPZ companies to pay the foreign employees via their foreign currency (FC) accounts from the company export retention quota (ERQ) account. The central bank will issue a circular in this regard this week.

People concerned said the government is going to take the decision for two main reasons. These are that foreigners shy away from the non-EPZ companies as they pay salaries in local currency and in cash; plus payments in local currency and cash-in-hand deter the National Board of Revenue (NBR) from taxing the foreign staffers.                  

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Factories currently located in the EPZs can pay their foreign workers via FC accounts while firms outside the EPZ have to pay salaries in taka, an official of the Bangladesh Bank's Foreign Exchange Policy Department told The Business Standard.

The official said this makes many foreign workers less interested in working for non-EPZ companies. The initiative has been undertaken to create equal opportunities for foreign workers both at EPZ and non-EPZ factories.

Industry people said many countries including Japan, China and India are now showing interest in investments at the Special Economic Zones (SEZs).

They said the new investments will employ a large number of foreign workers. If the salaries are paid in Bangladeshi currency, it will be difficult to get skilled foreign nationals for the production units. Therefore, both the domestic and foreign investors have been asking for the foreign currency payment facility for a long time.

Meanwhile, revenue board officials said salary payment in foreign currency to FC accounts will help bring the foreign workers in Bangladesh under the tax net. Foreigners have to send money from Bangladesh to their home countries often through hundi (an illegal non-banking channel) since they are paid in local currency. Salary to FC accounts will lessen their harassment in sending remittances to their home countries.

Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) Vice-President, and former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Siddiqur Rahman praised the move.

"Foreign staffers at non-EPZ factories have to convert their salaries into dollars to send it home as the employers still pay them in taka. This creates many hassles. Due to this, many foreign skilled workers are not interested in non-EPZ companies," he told The Business Standard.

A large number of buying house officials are foreigners. Apart from this, many foreigners work at export-oriented companies–including apparel manufacturing units.   

Siddiqur said the companies often have to pay the foreign employees more due to the obligation of payment in local currency. "If there is an opportunity to pay them in foreign currency, the employers will be able to hire foreign workers at a lower rate," he said.

However, Word Bank's former lead economist Dr Zahid Hussain said the decision should have been taken earlier. 

He said the country still has a shortage of skilled manpower in various sectors. In these cases, export-oriented companies have to rely on foreign workers. The decision is realistic to make foreigners interested in joining factories even outside of the EPZs.

Dr Zahid Hussain said that the EPZ Act will not apply to Special Economic Zones (SEZs). Foreign investors are interested in the SEZs including the Bangabandhu Industrial City in Mirsarai, Chattogram and Araihazar Japanese Economic Zone in Narayanganj. The foreign investors were concerned as it is difficult to invest if there are too many obstacles. 

He said that the fact is not that Bangladesh is saving foreign currency by paying the staffers in taka as the foreigners use to buy dollars with the local currency. Since there is no point in paying them in taka, such restrictions are of no use except to complicate the investments.

According to a report published by Transparency International Bangladesh (TIB) in February, 2.50 lakh foreign nationals are working in the country. Of the total foreign workers, 90,000 are legally employed.

Bangladesh / Economy / Top News

Non-EPZ / firms / foreign staffers / pay / Dollar

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Chief Adviser Muhammad Yunus speaks at the Chatham House in London on 11 June 2025. Photo: CA Press Wing
    No desire to be part of next elected govt: CA Yunus
  • File photo of BNP Standing Committee Member Amir Khasru Mahmud Chowdhury. Photo: Collected
    Khasru flies to London to join Yunus-Tarique meeting
  • File Photo: TBS
    DGHS issues 11-point directive to prevent spread of Covid-19 in Bangladesh

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • Screengrab from video shows a group of local youths forcing tourists to leave a tourist spot in Utmachhra area of Sylhet's Companiganj on Sunday, 8 June 2025, citing allegations of obscene activities and environmental damage
    Locals declare tourist spot in Sylhet 'closed', force visitors to leave
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook
  • Photo shows the Land Cruiser Prado car belonging to former member of parliament (MP) Anwarul Azim Anar found in Kushtia. Photo: TBS
    Luxury car of ex-AL MP Anar, who was killed in Kolkata, found in Kushtia

Related News

  • Pay your workers by 28 May or prepare for jail: Adviser Sakhawat to factory owners
  • Dollar drops as traders eye Trump tax bill, G7 currency talks
  • Students, professionals can pay overseas course fees in dollars via banks from now on
  • Shift to market-based exchange rate regime – what does it mean for the economy?
  • Global stocks, dollar surge as US, China agree 90-day tariff relief

Features

Among pet birds in the country, lovebirds are the most common, and they are also the most numerous in the haat. Photo: Junayet Rashel

Where feathers meet fortune: How a small pigeon stall became Dhaka’s premiere bird market

52m | Panorama
Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

23h | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

2d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

4d | Bangladesh

More Videos from TBS

WB predicts worst decade for global growth since 60s

WB predicts worst decade for global growth since 60s

57m | TBS Stories
Foreign firm to draft merger plan for investment promotion agencies

Foreign firm to draft merger plan for investment promotion agencies

2h | TBS Insight
US-China London meeting ends as planned

US-China London meeting ends as planned

2h | TBS World
When will the heat wave subside?

When will the heat wave subside?

3h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net