Country’s e-Commerce business owners on Wednesday expressed their deep concern over the imposition of VAT on online business platform. They said the newly proposed 7.5 percent VAT in the budget for 2019-20 fiscal will pose a big challenge for the growth of the industry. They were gathered at a roundtable discussion organized by Bangladesh Association of Software and Information Services (BASIS) Standing Committee on Digital Commerce at its office in the.
BASIS President Syed Alams Kabir presided over the roundtable. General Secretary of e-Commerce Association of Bangladesh (e-CAB) Md Abdul Wahed Tomal, BASIS Senior Vice President Farhana A Rahman, Director and Director In-Charge of BASIS Digital Commerce Standing Committee Didarul Alam among others were also present at the discussion.
BASIS President said that in this years’ budget financial allotment has increased to Tk 2176 core for ICT sector’s development. While ICT Division’s Budget allocation has creased by Tk 193 core in this year’s budget over that in the last year’s revised budget. Besides, the govt has allocated Tk 100 core fund for start-ups. Also, the govt has declared imposing VAT a 7.5pc VAT on social media business, he added.
Digital Commerce sector is growing in our country. But VAT has been increased from 0 to 7.5 percent in this sector. It will hinder the growth of e-commerce sector. We would request to exempt the VAT at least for next 5 years for this sector. BASIS senior vice president Farhana A Rahman said, e-Commerce is a growing sector. Imposing VAT will slow the pace of the growth of this sector. We will urge National Board of Revenue (NBR) to revise their decision.
Director In-Charge of BASIS Digital Commerce Standing Committee Didarul Alam said, from 0 percent the govt has imposed 7.5 percent VAT in this sector. This sector will lose its competitive edge because of this. I would urge the govt to exempt from e-Commerce.
