Be cashless, get tax benefit

In a bid to promote a cashless and formalised economy, the government will now provide some income tax benefit to individuals and companies with a condition that they conduct all their transactions through banking channels. 

In his presentation of the proposed national budget for the fiscal year 2024-24, Finance Minister Abul Hassan Mahmood Ali gave the country's information technology enabled service sectors (ITES) entrepreneurs another three years' tax exemptions, provided that all their transactions take place through the banking channel. 

Besides, non-listed companies will get 2.5 percentage points income tax benefit from the existing 27.5%, with a condition of yearly transactions of over Tk36 lakh through the banking channel of that company. 

Moreover, publicly listed and non-listed companies, who want tax benefits, have to make their transaction through a banking channel after a certain level of transaction, in line with the continuation of the last budget. 

Currently, there are 27 IT-enabled services enjoying tax exemption.

In the upcoming budget, the number of services will be reduced to 19, while another four sectors are being added — artificial intelligence or AI-based solution development, blockchain-based solution development, software as a service and data science with digital data analytics.

The ITES includes cyber security services, cyber security service, digital data analytics, mobile application development services, software development and customization services, web listing, website development and services, IT assistance and software maintenance services, geographic information services, digital animation development, digital graphics design, digital data entry and processing, e-learning platform and e-publications, IT freelancing, call centre service, document conversion, imaging and digital archiving.

The scraped services are — nationwide telecommunication transmission network, IT process outsourcing, website hosting, overseas medical transcription, search engine optimisation service, cloud service and system interrogation.

All other ITES in the list of exemption will get the tax benefit for another three years fulfilling all transactions through cash.