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The e-Commerce Association of Bangladesh (e-CAB) has expressed a mixed reaction to the proposed budget for the fiscal year 2024-25, noting the extension of the tax exemption period for the IT and software sectors by three years under the Smart Bangladesh plan
In a press statement, Finance Secretary Asif Ahnaf said that proposed tax exemptions on e-learning and e-applications would significantly aid the sector's development.
However, he called for additional tax exemptions for website hosting and cloud services, which are critical to the digital industry.
Mr Ahnaf also stressed the importance of the Business Identity Platform (DBID), proposed by e-CAB to enhance transparency and accountability in digital commerce.
Despite its launch, he noted that e-commerce organisations struggle with DBID due to the absence of a dedicated authority for the digital commerce sector and unclear functionalities of the platform.
Furthermore, e-CAB sees a need for extensive public awareness about their proposed Central Compliance Management System to protect consumer rights after its pilot phase.
Emphasising the role of smart logistics in e-commerce, Ahnaf mentioned e-CAB's cooperation in formulating the government's "National Logistics Policy."
He advocated for a five-year tax exemption for smart logistics companies, along with VAT waivers for warehouse and transportation services.
The e-CAB finance secretary also called for the establishment of "smart post offices" in rural areas and tax exemptions for cross-border e-commerce expansion.
Despite the encouragement of cashless payments in the proposed budget, e-CAB has requested a minimum two per cent cash incentive for digital payments to offset payment charges faced by businesses.
Additionally, the platform underscored the need for cashless measures in education and medical sectors.
Highlighting the e-commerce sector's growth, Mr Ahnaf pointed out that in the past five years, approximately 200,000 women and young entrepreneurs have emerged, creating over 500,000 jobs.
He called for a tax holiday for e-commerce entrepreneurs until 2031 to foster further development.
e-CAB hopes that the e-commerce sector will receive greater priority in the Smart Bangladesh initiative and that their proposals will be considered by the government.