A meeting was held between Finance Minister Abul Maal Abdul Muhith, Posts, Telecommunications & ICT Minister Mustafa Jabbar, National Board of Revenue Chairman Mosharraf Hossain Bhuiyan, ICT Secretary Subir Kishore Choudhury, NBR member (Customs: Audit, Modernisation & International Trade) Firoz Shah Alam, and Bangladesh Association of Software and Information Services (BASIS) President Syed Almas Kabir on Thursday (Jun 21). At the meeting, BASIS President focused on the revised proposals for budget FY 2018-19.
Syed Almas Kabir underlined that, BASIS proposed to reduce import tax on operating systems, database, development tools, and security software. But including these sectors, government has reduced import tax on 'other computer software’ as well, which will hamper the growth of local software industry. He also added that 5% VAT has been imposed on ITES. BASIS urge the government to withdraw VAT on ITES as corporate tax is exempted on IT/ITES up to June 2024.
He added, IT/ITES industry has been tax exempted up to 2024. But every year BASIS member companies have to collect tax exemption certificate from NBR. Hence, BASIS President urged Finance Minister to authorize BASIS to issue tax exemption certificate.
He praised the government for keeping online shopping/eCommerce VAT free. However, he urged to the government to make more clarity on the definition on the 'online shopping/eCommerce’ and 'virtual business’.
22.16% tax imposed on internet modem, computer network switch, hub, server, should be waived to ensure internet for all over the country, he added. He also urged to include ISP services in the ITES.
BASIS President also urged that, in the definition of IT services - IT traning, IT/ITES consultancy, software consultancy, platform as a service/cloud service, software as a service, system integration, eCommerce and online shopping, annual software maintenance contracts (AMC), IT infrastructure support service, and ISP services must be included.
At the end, he praised the government for keeping online shopping/eCommerce VAT free. However, he urged to the government to make more clarity on the definition on the 'online shopping/eCommerce’ and 'virtual business’.
Finance Minister, Posts, Telecommunications & ICT Minister, NBR Chairman listened to BASIS proposals carefully, and assured that the proposals will be implemented as per proposed.