IT sector leaders demand tax exemption for 3 more years

FE Team | Published: May 07, 2024 02:37:10

IT industry leaders on Sunday called for an extension of the tax exemption facility for three more years.
Removing this facility would diminish profitability and reduce reinvestment capabilities for IT/ITES companies, leading to slower industry growth and diminished export potential, they argued.
The industry leaders made the call at a policy dialogue on 'Investment Climate for Smart Bangladesh' at a hotel in Dhaka. The Venture Capital and Private Equity Association of Bangladesh (VCPEAB) organised the event, says a press release.
Presenting his keynote paper, VCPEAB President Shameem Ahsan said, "After a three-year tax exemption period, an annual tax rate of 1 per cent to 2 per cent can be introduced. The contribution of IT sector to Bangladesh's GDP stands at 1.09 per cent. In contrast, neighbouring India's contribution is 7.4 per cent, Philippines' 3.40 per cent, Indonesia's 4.23 per cent, and Estonia's 7 per cent."
"The evolution of Digital Public Infrastructure (DPI) reflects the increasing integration of digital technologies into everyday life, transforming governance and citizen interactions. Building powerful "Digital Capital" fuelled by Digital Public Intelligence, we can aim to make Bangladesh the "AI Use Case" capital of the world."
Speaking as the chief guest, Prime Minister's Private Industry and Investment Adviser Salman F Rahman said, "I plan to discuss with our Honourable Prime Minister the issue of tax exemption in the IT sector. Instead of considering the withdrawal of tax exemption, we should explore options to provide additional incentives."
State Minister for Posts, Telecommunications, and Information Technology Zunaid Ahmed Palak said, "I support the reasonable demand from the ICT industry entrepreneurs. Therefore, I humbly request Mr. Salman F Rahman to discuss with our honourable Prime Minister the continuation of the current tax exemption for the next few years."
Kazi Nabil Ahmed, MP said, "Tax benefits are crucial for growing industries like technology. To ensure a smart Bangladesh, we must establish a knowledge-based ecosystem that penetrates every segment. It's imperative to leapfrog certain stages to bridge the gap with other countries. Otherwise, we risk falling behind continuously."
Zara Jabeen Mahbub, MP and VCPEAB Advisor, stated, ''In order to achieve a truly smart Bangladesh, it is imperative that we do not overlook the pivotal role of women. Their inclusion is paramount. By prioritising women's participation, particularly through healthcare digitisation initiatives, we not only can enhance women's health, but also effectively realise the vision of a smart Bangladesh.''
Partners of the event include ADN Telecom, Spectrum Engineering Consortium (Pvt.) Ltd., Smart Technologies (BD) Pvt. Ltd., Bran Station 23 PLC, IT Consultants PLC, Bdjobs Ltd, and eGeneration PLC.
Among others, FBCCI Senior Vice President Md. Amin Helaly, DCCI President Ashraf Ahmed, CCCI President Omar Hazzaz, CSE Chairman Asif Ibrahim, Member of University Grants Commission (UGC) Prof. Dr. Md Sazzad Hossain; Chairman of Policy Exchange Bangladesh Dr. M Masrur Reaz; and Senior Research Fellow of Economic Research Group (ERG) Dr. M. Rokonuzzaman also spoke at the roundtable.
Chairman of ADN Telecom Asif Mahmood, Founder of Bdjobs Ltd & former president of BASIS Fahim Mashroor; Managing Director of Spectrum Engineering Consortium Pvt. Ltd. Forkan Bin Quasem; Tanveer Ali, Chief Investment Officer, Constellation Asset Management; Managing Director of Smart Technologies (BD) Ltd. Mohammad Zahirul Islam, CEO of Brain Station 23 Raisul Kabir, Policy Advisor of Centre for Research and Information (CRI) Imran Ahmed were also present.