Tech sector wants tax exemption for 7 years

Technology sector trade bodies demanded exemption from taxes for seven years to foster the journey towards implementing Smart Bangladesh vision.

“As the government wants to transform the country into a smart Bangladesh, continuing tax exemptions in this sector is more important than ever. We are demanding tax exemption for the IT sector till at least 2031,” said Russell T Ahmed, president of Bangladesh Association of Software and Information Services (BASIS).

He was speaking at a pre-budget press conference at the BASIS head office in Dhaka on Thursday.

BASIS, Bangladesh Computer Samity (BCS), Bangladesh Association of Contact Centre & Outsourcing (BACCO), Internet Service Provider Association of Bangladesh (ISPAB) and E-Commerce Association of Bangladesh (E-CAB) jointly organised the event.

BCS President Subrata Sarker, BACCO President Wahid Sharif, ISPAB President Emdadul Hoque and E-CAB Senior Vice-President Mohammad Sahab Uddin were also present.

On 10 March, leaders of five trade bodies including BASIS sent a proposal to Finance Minister Abul Hassan Mahmood Ali demanding the government extend the tax exemption till June 2031.

BCS President Subrata Sarkar said that the corporate tax exemption period for the technology sector should be kept until 2031 for the purpose of building a smart Bangladesh.

“Foreign investors invest in Bangladesh's local ICT sector with a long-term view, where the industry has only just started to take off. So I think there is no option to continue this tax exemption,” he said.

ISPAB President Emdadul Hoque said that the internet companies are incurring losses because of additional taxes.

“All ISPs are facing losses due to additional 10% tax on internet service bills. We strongly demand withdrawal of this tax on internet services in the next financial year ( 2024-25),” he said.