IT Leaders in Bangladesh Advocate for Extended Tax Exemption to Boost Sector Growth

IT industry leaders in Bangladesh have called for a three-year extension of the tax exemption facility to sustain profitability and reinvestment capabilities within the IT/ITES sector. They voiced their concerns during a policy dialogue on ‘Investment Climate for Smart Bangladesh’ in Dhaka, organized by the Venture Capital and Private Equity Association of Bangladesh (VCPEAB).

Shameem Ahsan, VCPEAB President, proposed that after the tax exemption period, a minimal annual tax rate of 1% to 2% could be introduced. He highlighted the comparative contribution of the IT sector to the GDP in Bangladesh and other countries, stressing the potential for growth.

The event featured discussions on the importance of maintaining tax incentives to foster industry growth and enhance the country’s export potential. Notable speakers included the Prime Minister’s Private Industry and Investment Adviser Salman F Rahman and State Minister for Posts, Telecommunications, and Information Technology Zunaid Ahmed Palak, both advocating for the continuation of tax exemptions.

Speakers emphasized the need to leverage digital technologies to transform governance and make Bangladesh a global hub for AI use cases. They also stressed the importance of including women in the tech sector, especially through healthcare digitization initiatives, to advance the vision of a smart Bangladesh.

The dialogue underscored the collective call from various stakeholders, including government officials and industry leaders, for policy support to accelerate the digital transformation and economic growth of Bangladesh.

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