Staff Reporter :
Entrepreneurs from Bangladesh’s thriving information technology (IT) industry have called for an extension of the current tax exemption facility for another three years, emphasizing its crucial role in maintaining the sector’s momentum.
The demand was voiced during a seminar on “Investment Climate for Smart Bangladesh” held at a city hotel on Sunday.
Private Industry and Investment Advisor to the Prime Minister, Salman F Rahman, echoed his support for the extension while addressing attendees at the event.
The existing tax exemption period for the IT sector is set to conclude on June 30 of this year, prompting concerns among industry stakeholders about its potential impact on the sector’s growth trajectory.
Industry sources reveal that the local market size of the IT sector amounts to approximately $1.5 billion annually, with export revenues reaching around $1.9 billion. Entrepreneurs have collectively invested approximately $600 million in the sector, fostering the establishment of over 4,500 IT/Information Technology Enabled Services (ITES) firms nationwide. These enterprises employ over 750,000 ICT professionals, contributing significantly to the country’s economy.
Keeping the situation in mind, eGeneration Limited Managing Director Shameem Ahsan said, “After three years of tax exemption, a tax of 1 per cent to 2 per cent per annum may be imposed.”
“Bangladesh’s GDP growth in the IT sector is 1.09 per cent, while the Philippines is 3.40 per cent, Indonesia 4.23 per cent, Estonia 7.00 per cent, India 7.40 per cent. Therefore, government policy support is needed here,” Shameem added.
Raisul Kabir, Chief Executive Officer of Brain Station 23 Ltd said, “We export software. If tax is imposed in this sector, we will not be able to compete with other countries.”
Managing Director of Smart Technologies (BD) Ltd Mohammad Zahirul Islam said that the export of ICT products should be made tax free and in the era of AI, entrepreneurs of this sector should be given more facilities.
Seeking assistance of Salman F Rahman, ICT State Minister Zunaid Ahmed Palak said, “We agree with the logical demands of businessmen in this sector. The tax exemption in the IT sector should remain as it is.”
He said the government expects to export $5 billion in this sector by 2029. For this, a tax exemption facility is required in this sector. For this, NBR needs to take up policies for the IT sector in three phases till 2026, 2031 and 2041.
Speaking at the event as Chief Guest Salman F Rahman said, “I will talk to the prime minister regarding tax exemption in the IT sector. Withdrawing tax exemption is not even an option. We have to see whether more incentives can be offered.”
