Al Amin :
The government has extended tax exemption benefits for 19 sub-sectors of the information technology (IT) industry for another three years.
However, the companies must now conduct all their financial transactions through banking channels to qualify for the tax break.
This condition applies to sub-sectors like AI-based solution development, blockchain-based solutions, robotics process outsourcing, software as a service (SaaS), cybersecurity services, and various web and software development services.
The full list includes digital graphics design, data entry, e-learning platforms, IT freelancing, and call centres.
Four new sub-sectors—AI, blockchain, robotics process outsourcing, and SaaS—were also included, while nationwide telecommunication networks and cloud services have been excluded.
The National Board of Revenue (NBR) estimates the government loses around Tk 1,477 crore annually in taxes from IT services. However, industry insiders believe the actual market size is much larger, suggesting a potential net profit of Tk 50,000 crore based on a 10 percent tax exemption.
The Bangladesh Association of Software and Information Services (BASIS) estimates the domestic IT services market to be around Tk 2,000–2,500 crore annually.
While direct tax revenue might be lower, BASIS highlights the significant indirect contribution of IT to various industries like agriculture, education, healthcare, media, and garments, which all rely on technology for a substantial portion of their income.
The NBR has been exempting IT services from tax since 2011. Initially, this tax exemption was set to expire on June 30. However, the exemption period is now being extended from three to five years in response to demands from ICT sector entrepreneurs, despite pressure from the International Monetary Fund (IMF) not to extend it.
Additionally, the government plans to rationalise the tax deduction at source for the supply of gas and petroleum oil, as well as the rate of tax collection at source for milk powder, aluminium products, and ceramic products. These taxes will be calculated as the minimum tax, according to officials.
Moreover, the government will propose imposing a turnover tax on the production of sweetened beverages at a rate of 3 percent, aligning it with the rate for carbonated beverages, which is an increase from the current rate of 0.6 percent. The proposal will also include collecting turnover tax from any trust.