The government has backed away from its move to phase out tax benefits from the ICT sector in a bid to facilitate its growth, considering its untapped potential.
In the budget for the next FY25, the National Board of Revenue (NBR) is set to extend the tax exemption for the ICT sector by three more years, sources said.
Finance Minister Abul Hassan Mahmood Ali is likely to propose the benefit in the Jatiya Sangsad while delivering the budget speech for FY25 on Thursday.
The tax benefit was scheduled to expire on June 30, 2024.
Income derived from businesses include AI-based Solution Development, blockchain based solution development, robotics process outsourcing, software as a service, cyber security service, digital data analytics and data science, mobile application development service, software development and customisation, software lab service, web listing, website development and service, IT assistance and software maintenance service, geographic information service, digital animation development, digital graphics design, digital data entry and processing, e-learning platform and e-publication, IT freelancing, call center service, document conversion, imaging and digital archiving will be exempted from tax payment.
However, a condition on cashless transactions has been tagged against the tax exemption benefit.
In FY25, tax benefits for private hi-tech parks and private economic zones would not continue next year.
For the first time, the NBR is going to introduce prospective tax rates, keeping the tax structure for FY25, to be proposed, effective FY26.
Also, black money whitening facility for both individual and corporate taxpayers would be offered in the upcoming fiscal.
Black money-holders would be able to declare their undisclosed income by investing in flat, apartment, land, cash or other sectors paying 15% tax.
Under the scheme, taxmen or any of the government entities would not be able to raise questions on the source of the income.
The tax authorities would also restrict availing tax exemption on same income sources for more than one time.
Even any taxpayer being reconstituted, merged or demerged, would not be able to enjoy tax benefits on the same source income several times.
