It is good to note that the E-commerce sector hits a new milestone by creating employment opportunities for thousands of unemployed people amid the ongoing corona crisis.
If the elevation of the online business represents the mega trend of the 21st century, the ongoing COVID-19 crisis is significantly accelerating the process where online purchase sometimes becomes an indispensable part of the daily life of the consumers.
Consumers today want more choices at their fingertips and everything faster at their doorsteps. People now order their favourite products online from home as large gatherings in shopping malls or restaurants poses serious health risks. There is no denying that economically marginalised and lower-middle-income families are still market-oriented, but the middle class or upper-middle class people now prefer shopping online.
Online business or e-commerce has expanded in Bangladesh at a tremendous rate. The e-commerce market currently stands at $2.77 billion, but could soon expand to $3.77bn or more as the government is providing policy support and enhancing facilities in this regard.
Government should formulate and implement new taxation
law for e-commerce which will more clearly
define the parameters of this booming industry
Moreover, a large young population, and high rate of internet penetration have made Bangladesh a potential market for global e-commerce giants in recent years.
In view of this, it can be said that e-commerce sector can be one of the largest tax-collecting areas. But unfortunately, authorities concerned have not been able to establish any infrastructure system to collect revenue from online business sector. Hence, it is high time to build a highly skilled ICT wing in order to collect revenues from the ICT firms or services.
It needs no emphasising that in order to collect revenue from the ICT service based business firms the NBR has to bring about some necessary changes in its existing VAT rules. Firstly, the NBR has to identify the challenges and hurdles in the area.
As the revenue authority has no infrastructure in place to collect revenue from this area, they must build necessary infrastructure to collect revenues from e-commerce sector.
In this regard, the revenue board will need a highly skilled ICT wing aiming to collect revenues from the ICT firms or services. Also the government should formulate and implement new taxation law for e-commerce which will more clearly define the parameters of the e-commerce industry.