The ICT trade body and e-commerce businessmen yesterday urged the government to abolish VAT system in the e-commerce sector for at least next four years.
They also demanded that the 4% VAT proposed in the budget be withdrawn from the ICT and e-commerce sector.
The leaders Bangladesh Association of Software and Information Services (BASIS) and stakeholders of e-commerce business made the demand at a round-table discussion on “Policy support for local e-commerce industry” in the capital yesterday.
They stressed formulation of a local entrepreneur-friendly policy for the development of e-commerce sector in the country.
The programme was organised by BASIS while the keynote of the event was presented by the Convener of BASIS e-commerce alliance Fahim Mashroor.
Former president of BGMEA, Shafiul Islam Mohiuddin, said till the e-commerce business gets mature, it is necessary to protect the sector for the greater interest of the country.
According to MA Hakim, president of ISPAB, the government has failed to create enough job and some educated youths are doing something through e-commerce, but the imposition of 4% VAT is really an obstacle to the growth of e-commerce business.
“We need a policy framework for survival, or else the industry will adversely be affected,” said Sarwar Alam, former president of BASIS.
Additional Secretary of ICT Division Susanta Kumar Saha said local entrepreneurs need policy support for survival as the huge investment of multinational companies is a threat to the local businessmen.
“We cannot stop international e-commerce organisations doing business in Bangladesh according to WTO rules, we have to compete with them.”
He admitted that the newly proposed 4% VAT will take its toll on local entrepreneurs.
In his address, BASIS President Shameem Ahsan claimed that they are working relentlessly for the development of a promising e-commerce sector.
The e-commerce platform is working for legal assistance, mutual communication and networking and other related activities.
More than 10% foreign investment in e-commerce sector is not allowed in many countries of the world, but here foreign e-commerce and telecom companies are taking over the whole market, he added.
“If an extra VAT is imposed, local entrepreneurs will be demotivated.”
Among others, BASIS Vice-President Rashidul Hasan and Secretary General Uttam Kumar Paul spoke at the programme.
