Bangladesh Association of Software & Information Services (BASIS) & Internet Service Providers Association of Bangladesh (ISPAB) yesterday demanded of the government to withdraw the proposed 15% VAT from internet services to implement the Vision 2021 announced by the present government.
The Association made the demand at a press conference held at BASIS office in the capital yesterday.
They said the imposition of VAT on internet services is a big obstacle to building a digitised Bangladesh and it would hamper the country’s current growth in the ICT sector.
The proposed budget for the next fiscal did not fulfil the expectation of ICT sector, said the BASIS leaders.
ISPAB President MA Hakim said most of their demands have been neglected in the upcoming budget which will ultimately cause sufferings to the industry.
BASIS President Shameem Ahsan, ISPAB President MA Hakim, Bangladesh Computer Society (BCS) President Mahfuzul Arif, BASIS Secretary General Uttam Kumar Paul, Treasurer Shah Imrul Kayeesh spoke at the conference.
They also opposed the proposed 4% VAT on online shopping as this sector contributes to generating employment and entrepreneurs in e-commerce business.
Shameem Ahsan said the VAT rate will be a big barrier to the e-commerce business and this may cause buyers to be reluctant to shop using e-commerce.
He observed that there are many young companies that have made investment and they may face difficulties.
“For the growth of this sector, we call for VAT exemption on the e-commerce sector for the next 3-4 years,” said Shameem.
The BASIS president wants the finance minister to attach utmost importance to this issue in the budget.
