In order to create efficient ICT experts to strengthen the industry aiming at fetching sizeable foreign currencies from software exports and outsourcing services as well as high-end overseas jobs, the leading entrepreneurs reiterated their demand for allocation of total Taka 700 crore.
The demand was made at a press conference organised by the Bangladesh Association of Software & Information Services (BASIS), the apex trade body of the ICT entrepreneurs, organised jointly with the Bangladesh Computer Samity (BCS), the Internet Service Providers Association of Bangladesh (ISPAB) and the Bangladesh Association of Call Center and Outsourcing (BCCO).
President of the BASIS, Syed Almas Kabir read out a written statement at the press conference held at the Pan Pacific Sonargaon Dhaka on Sunday. BASIS President said, “For software sector’s development, we urged to sanction Taka 200 core allotment in ICT sector which is not included yet. For outsourcing sector’s development, Taka 300 crore can be allocated which will be disbursed through BCC, while for Technical Assistance (TA) project, we need to have Taka 200 crore allotment. We would urge the government to take these issues into account while reviewing the budget.”
President of the BCC, Shaheed-Ul-Munir, President of the ISPAB, M A Hakim and President of the BCCO, Touhid Hossain, among other senior leaders of the said ICT bodies, were present at the press conference. Hailing the government for increased allocation in the industry, Syed Almas Kabir said,‘The allocation for ongoing development projects in ICT sector has increased by Tk 2,176 crore in the budget, side by side, allocation for Information & Communication Technology Division has increased by Tk 193 crore this year, which is praiseworthy.”
Pointing out to some encouraging features for the industry in the proposed budget, he said: "The government has allocated Tk 100 crore start-up fund for the new entrepreneurs which is great initiative to boost entrepreneurship. But imposition of 7.5 percent VAT on Social Media and Virtual Business is considered to be impediment for smooth expansion of the sector", Syed Kabir added.
Mentioning that 5 percent VAT has been imposed on ITES (Information Technology Enabled Services), he said this decision would also harm the sector. So, this VAT should be withdrawn, he added. He demanded to include the services system integration, platform as a service/cloud service, software as a service, annual software maintenance contacts (AMC), information system/ information technology/ CIS/ ID Assessment/ Audit Services, ICT-related capacity building/ skill development, IT training, cyber security assessment, internet broadband service (ISP), computer hardware within the definition of IT Enabled Services (ITES).
President of BCS, Md. Shahid-Ul-Munir said the decision of paying VAT on computer and its spare parts by the traders ultimate obstruct the implementation of the Digital Bangladesh. ISPAB President MA Hakim observed that the government is pro-active in expansion of IT. At least 10 persons have been employed by each of the 1,000 broadband connection providers. Besides, as per World Bank data, 1.38 percent of GDP growth occurs with each 10 percent of broadband internet penetration. Secretary General of BACCO, Touhid Hossain demanded withdrawal of VAT completely from the IT Enabled Services (ITES).
