Information Technology sector experts feel that implementing policy that supports the ICT sector in achieving its end goals are far more important than the budget allocation.
Even then, industry insiders say the government’s move to increase the budget allocation for the Information and Communication Technology (ICT) sector is a positive sign that reflects the amount of importance being placed on the industry, especially as promoting the sector will carry forward the government’s vision of Digital Bangladesh.
The proposed budget for the 2017-18 fiscal year allocates Tk3,974 crore to the ICT Division, almost double from the last fiscal year budget amount of Tk1,819 crore. However, the budget for Posts and Telecommunications Division has been reduced by Tk381 crore to a proposed allocation of Tk2,521 crore for the next fiscal year.
All this is in line with the government’s wish to bring about rapid expansion of IT/ITES services and boost investment in the ICT sector, said Finance Minister AMA Muhith during his budget speech on June 1.
Bangladesh Association of Software and Information services (BASIS) President Mustafa Jabbar felt the increased budget was an excellent opportunity for the industry and lauded the government’s decision to exempt local software developers and companies from paying VAT.
“The additional budget will increase our capacity and help the industry to grow,” said Mustafa. “To build a digitised Bangladesh, there is no alternative but to withdraw VAT or duties from locally developed software.”
Rezwana Khan, director and COO of Star Computer Systems Ltd, said: “It is a big opportunity for us. Now, our responsibility will also increase and we need more policy support for the local companies. This sector will contribute a lot to achieve Vision 2021 and Vision 2041. So I propose a reduction in the duties placed on hardware and parts required to assemble or manufacture items like cellular phones, laptops, tablets, etc.”
Dohatec New Media Chairman Luna Shamsuddoha said: “While the increased budget will definitely be good for us, it will also increase the capacity of the government.”
This was echoed in Finance Minister Muhith’s budget speech where he said information technology not only makes life easier, but also creates many opportunities to facilitate economic growth.
“With the expansion of ICT in the private sector, we are encouraging automation and National e-Government Procurement (e-GP) processes in different areas of public sector as well. Through ICT, various innovative ideas are being implemented in government offices,” he said.
To that end, the government has already planned to set up 12 IT parks at the district headquarters in Gopalganj, Mymensingh, Jamalpur, Rangpur, Barisal, Keraniganj in Dhaka, Comilla Sadar (South), Chittagong Port, Ramu in Cox’s Bazar, Singra in Natore, Companiganj in Sylhet, and the Khulna University of Engineering and Technology campus in Khulna.
It has also taken initiatives to set up seven IT training and incubation centres across the country and to expand high-speed fibre-optic connectivity up till the union level.
In addition, it has undertaken a project entitled “Digitising Implementation Monitoring and Public Procurement” in collaboration with the World Bank, wherein a total of 80% public procurement tenders will be covered by e-GP and the e-GP system will be expanded to 23 large government organisations.
BASIS Vice-President Farhana A Rahman said in spite of all these positive initiatives, the need to ensure the implementation of the budget and to formulate policy to support ICT businesses was rather urgent.
Since 2011, the ICT Division has undergone several makeovers until finally, in February 2014, it was integrated into the Ministry of Posts, Telecommunication and Information Technology to provide a forward thrust for the ICT sector.
Experts said the change was a strong indication that the government was keen to keep pace with the changing, modern world and was placing a high level of importance on ICT, especially in terms of policy.
Former BASIS general secretary Uttam Kumar Paul also stood in support of creating stronger policy for the sector, stating that Bangladesh needed country branding in order to promote locally produced ICT products to the rest of the world.
“As the government is IT friendly, it should form a policy whereby local software use should be promoted, if not compulsory,” he said.
<10% duty on imported mobile phones criticised>
Mobile phone importers have criticised the government’s proposal to impose 10% duty on the import of mobile phone sets, saying it would increase market price as well as illegal import.
“The 10% import duty will definitely increase the mobile handset prices around 30%, which will impact negatively on the local market,” said Rezwanul Haque, general secretary of the Bangladesh Mobile Phone Importers’ Association.
He said a total of 80 importers import around 30 million handsets annually, which have the market price of around Tk8,000 crore.
Requesting anonymity, a mobile handset importer said illegal mobile import would potentially increase if the government imposed the import duty.
Monday, July 20, 2026
