a year ago

Tax exemption on ICT sector likely to be extended

BASIS seeks the benefit until 2030

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The revenue board has dropped a broader hint to extend the tax exemption on income derived from the ICT sector in the budget for the upcoming fiscal year (FY).

The existing tax benefit for the Information and Communication Technology-enabled services is scheduled to expire in June, 2024.

Dr Md Kausar Ali, first secretary of the income tax policy wing of the National Board of Revenue (NBR), made a positive response to a proposal by the Bangladesh Association of Software and Information Services (BASIS) at a pre-budget discussion at the NBR headquarters on Tuesday.

BASIS leaders proposed to extend the tax benefit until 2030.

"… may get something positive but it is unlikely to be until 2030. I can give you this glimpse, you will get some positive things," Mr Ali told the meeting in response.

Presiding over the meeting, NBR member of Customs (Policy) wing Masud Sadiq said the country is heading towards graduation to a middle-income one and might not be able to continue such tax protection for a longer period of time.

In a written proposal, Samira Zuberi Himika, senior vice president of BASIS, stated that the ICT industries need the facility until 2030 for achieving the export target of U$5.0 billion and keeping the domestic ICT sector competitive.

The tax benefit would help attract young entrepreneurs to come in the ICT businesses, she added.

Mobile Phone and Refrigerators Manufacturers proposed to cut VAT rate on import of raw materials for another five years.

The existing VAT rate of 5.0 per cent for the sector is scheduled to expire on June 30, 2023.

The ICT sector businesses proposed to incorporate software, hosting and cloud services under the definition of ITES.

Bangladesh Computer Samity proposed to withdraw 15 per cent VAT on import of laptop and reduce VAT and taxes on import of printer, toner and cartridge to 1.25 per cent from 26 per cent.

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