ICT sector calls for supportive policies to implement Smart Bangladesh

Leaders of national trade bodies related to the ICT sector have called for policy support to achieve self-reliance and build Smart Bangladesh.

At a joint post-budget press conference on Sunday, leaders of five relevant associations presented their suggestions for the needed support.

Bangladesh Association of Software and Information Services (BASIS) President Russell T Ahmed, appreciating the government's proposal to extend the ICT sector's tax holiday for three years, also urged the restoration of tax holidays for the cloud service and web hosting sectors, alongside not imposing duties on the hi-tech park-hosted companies that had counted on incentives.

Bangladesh Association of Contact Center and Outsourcing (BACCO) President Wahid Sharif expressed concern about the removal of tax exemptions from sectors like cloud services, IT process outsourcing, medical transcription, search engine optimisation, system integration, and NTTN services, warning that this could negatively impact the ICT industry.

Additionally, he criticised the proposal to increase supplementary duty on mobile SIM card usage by 5%, which would raise the cost of mobile internet services. He stressed that expanding mobile internet and rural internet services is crucial for achieving Smart Bangladesh.

Internet Service Provider Association of Bangladesh (ISPAB) President Md Emdadul Hoque criticised the failure to include all ISP services under the IT-enabled services (ITES) category, alongside the imposition of a 10% advance income tax on broadband internet service providers and a 37% VAT and duty on ONU and OLT equipment.

"ISPAB believes these measures will hinder the expansion of internet services and the transition from Digital Bangladesh to Smart Bangladesh," he added.

e-Commerce Association of Bangladesh (e-CAB) Vice President Syeda Ambareen Reza said that in the implementation of Smart Bangladesh, the existing benefits of the IT and ITES sectors should be maintained and all supporting sectors should also be developed because sometimes the growth of the main industry is hindered by weaknesses in the supporting sectors.

A VAT waiver for e-commerce deliveries to enhance online sellers' competitiveness, a minimum 2% cash incentive for cashless transactions, and no tax deduction at source for payment gateway charges were among her suggestions.