Call to withdraw proposed 5.0pc VAT on software sector

Business Report :
Terming the budget as inconsistent with the objective of Smart Bangladesh, business leaders of the ICT sector urged Prime Minister Sheikh Hasina to withdraw the imposition of 5.0 per cent VAT on the software sector from the proposed budget.
Urging the tax exemption in the ICT industry to be extended until 2030, they also said the budget for the fiscal year 2023-24, announced by the government, did not reflect the proposals of the information and communication technology sector as expected.

The business leaders of the national trade organisations of the ICT sector said this at a press conference in a post-budget reaction on Sunday at BASIS Auditorium in Dhaka.
Bangladesh Association of Software and Information Services (BASIS), Bangladesh Computer Samity (BCS), Bangladesh Association of Contact Center & Outsourcing (BACCO), Internet Service Provider Association of Bangladesh (ISPAB) and E-Commerce Association of Bangladesh (E-CAB) jointly organised the press conference.
Speaking at the press conference, BASIS president Russell T. Ahmed said import duty on operating systems, databases and security software has been increased to 5 per cent to 25 per cent while 5.0 per cent VAT on software has been proposed which is incompatible with the Smart Bangladesh goal.

He proposed making specific proposals, extending the period of corporate tax exemption for this sector till 2030, withdrawing VAT on software and ITES, and increasing cash incentives from 10 per cent to 20 per cent against software and IT services exports, he said.
However, the BASIS president said none of these were considered in the proposed budget.

BACCO President Wahid Sharif, ISPAB President Md ImdadulHoque and E-CAB Vice President Mohammad Shahabuddin, among others, were also present at the event and gave their budget reaction on behalf of their respective associations and answered various budget-related questions from the media representatives.