Photo : Collected
Leaders in the IT industry have demanded that tax exemption be extended for three more years.
They raised the demand at a policy dialogue titled “Investment Climate for Smart Bangladesh” held at Sheraton Dhaka on Sunday. Venture Capital and Private Equity Association of Bangladesh (VCPEAB) organised the event.
IT leaders believe keeping the exemption is crucial as removing it will diminish profitability and reduce reinvestment capabilities of IT/ITES companies, resulting in slower industry growth and diminished export potential.
VCPEAB President Shameem Ahsan, who chaired the discussion, said in his keynote that an annual tax rate of 1-2 per cent can be introduced after a three-year tax exemption period.
“The contribution of the IT sector to Bangladesh’s GDP stands at 1.09 per cent. In contrast, our neighbouring country India's contribution is 7.40 per cent, the Philippines' 3.40 per cent, Indonesia's 4.23 per cent, and Estonia's 7.00 per cent,” he said.
He also stated, “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 DPI, we can aim to make Bangladesh the ‘AI use case’ capital of the world.”
Salman F Rahman, the prime minister’s private industry and investment adviser, was the chief guest. He said, “I plan to discuss tax exemption in the IT sector with the prime minister. Instead of considering the withdrawal of tax exemption, we should explore options to provide additional incentives.”
Special guest Zunaid Ahmed Palak, the state minister for posts, telecommunications and information technology, said, “I support the reasonable demand from the ICT industry entrepreneurs. Therefore, I humbly request the adviser for private industry and investment to the prime minister to discuss with the premier the continuation of the current tax exemption for the ICT industry for the next few years.”
Special Guest Kazi Nabil Ahmed, who is a lawmaker, 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 is imperative to leapfrog certain stages to bridge the gap with other countries. Otherwise, we risk falling behind continuously.”
Guest of honour Zara Jabeen Mahbub, an 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 can not only enhance women's health but also effectively realise the vision of a smart Bangladesh.''
Another guest of honour lawmaker Ferdous Ahmed said, “There is a multibillion-dollar media, entertainment and technology industry. We need to digitise this industry in order to attract foreign investment.”
Partners of the event include ADN Telecom, Spectrum Engineering Consortium, Smart Technologies (BD), Brain Station 23, IT Consultants, Bdjobs, and eGeneration.
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; Senior Research Fellow of Economic Research Group (ERG) Dr M Rokonuzzaman; Chairman of ADN Telecom Asif Mahmood; Founder of Bdjobs Ltd and former president of BASIS Fahim Mashroor; Managing Director of Spectrum Engineering Consortium Forkan Bin Quasem; Tanveer Ali, Chief Investment Officer at Constellation Asset Management; Managing Director of Smart Technologies (BD) Mohammad Zahirul Islam; CEO of Brain Station 23 Raisul Kabir; and Policy Advisor of Centre for Research and Information (CRI) Imran Ahmed spoke at the event.
Messenger/Fameema
