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Tax exemption for 'Smart Bangladesh'

FE REPORT | June 07, 2024 00:00:00

The government will materialise the dream of 'Smart Bangladesh' by using artificial intelligence technologies for the benefits of the country and the people.

Finance Minister Abul Hassan Mahmood Ali disclosed the plan during his proposed budget speech for the fiscal year 2024-2025.

"Smart Bangladesh will be realised using artificial intelligence type cutting-edge technologies of which there will be four pillars such as smart citizens, smart economy, smart government and smart society," he said.

"In our 'Smart Bangladesh', the per capita income will be at least $ 12,500, less than 3 per cent of people will be below the poverty line and extreme poverty will be reduced to zero, inflation will be limited between 04 per cent and 05 percent, budget deficit will remain below 05 per cent of GDP, revenue-GDP ratio will be above 20 per cent; investment will be 40 per cent of GDP," he continued.

The finance minister says that the government has a target to achieve 100-percent digital economy and science and technology-based literacy.

Healthcare would reach everyone's doorstep, he said, adding that all services, including automatic communication system and sustainable urbanization, required by the citizens will be at their doorsteps.

He further said that a paperless and cashless society will be created.

Most importantly, a society based on justice and equality will be established in 'Smart Bangladesh'.

In a bid to facilitate the building of 'Smart Bangladesh', Mahmood Ali has proposed exempting tax on income arising from a number of business activities of a resident individual or a non-resident Bangladeshi natural person for three years.

To avail the exemption benefit, all these business activities of such person have to be are cashless, however.

The business activities are (a) AI based solution development; (b) Blockchain based solution development; (c) Robotics process outsourcing; (d) Software as a service, (e) Cyber security service, (f) Digital data analytics and data science; (g) Mobile application development service, (h) Software development and customization, (j) Software test lab service, (j) Web listing, website development and service; (k) IT assistance and software maintenance service, (l) Geographic Information Service; (m) Digital animation development; (n) digital graphics design, (o) digital data entry and processing, (p) e-learning platform and e-publication, (q) IT freelancing; (r) call centre service, and (s) Document conversion, imaging and digital archiving.

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