DHAKA, May 5, 2024 (BSS) - Noting that the ICT sector is going to be the main 
saviour of the country's economy in the future, Prime Minister's Private 
Industry and Investment Adviser Salman Fazlur Rahman today advocated for 
continuing the various tax facilities policy apart from support that the 
sector is currently enjoying for further flourish of this sector.

"I'm cent percent agreed with the ICT entrepreneurs that the existing tax 
facilities should remain. I still think that the sector is still at the 
premature stage and it won't be wise to withdraw the existing tax facilities 
that the sector is currently enjoying. Rather, we've to think of giving more 
incentives, otherwise challenges will come," he said.

Salman was speaking as the chief guest at a roundtable titled "Investment 
Climate for Smart Bangladesh" held at a city hotel.

State Minister for Posts, Telecommunications and ICT Zunaid Ahmed Palak and 
Parliamentary Standing Committee Chairman on the same Ministry Kazi Nabil 
Ahmed spoke as special guests chaired by Venture Capital and Private Equity 
Association of Bangladesh (VCPEAB) president Shameem Ahsan. The VCPEAB 
organized the roundtable.

Ferdous Ahmed, MP and Zara Jabeen Mahbub, MP also spoke as guests of honour.

Agreeing with the various demands of the entrepreneurs of the ICT sector, 
Salman said he would discuss with the Finance Minister and the Prime Minister 
regarding the various issues surrounding the industry.

Criticizing slightly the National Board of Revenue (NBR) for imposing more 
burden on the existing regular taxpayers, the Adviser suggested that the 
revenue board should focus more on bringing in the untaxed people to the tax 
net.

"Unless the tax collection system is digitalized fully or major reforms are 
not brought, then the tax to GDP ratio will not increase," he added.

Mentioning that data is going to be the main asset in the coming days, the 
Adviser urged the relevant stakeholders and entrepreneurs to give more 
emphasis on AI, data sign, big data management, chip designing, cyber 
security and establishing a huge data centre.

State Minister for ICT Zunaid Ahmed Palak said that the country's IT and ICT 
sector witnessed massive successes over the last 15 years under the 
farsighted vision of Prime Minister's ICT Adviser Sajeeb Wazed Ahmed and 
courageous leadership of Prime Minister Sheikh Hasina.

He urged the PM's Private Industry and Investment adviser to talk with the 
Finance Minister and the Prime Minister about the rational demands of 
continuing tax facilities in the ICT sector.

The State Minister suggested that the higher educational institutions and 
universities should change their curriculum in line with the changing global 
context in the ICT sector.

He opined that the existing tax exemption facilities in the ICT sector should 
continue in the next year while there could be discussions on how to 
facilitate the sector considering the changing context of FY26, FY31 and 
FY41.

Palak opined that if the ICT sector receives government's policy support for 
the next 10 years, then the ICT and the IT enabled services would be the 
major export-oriented sector in the country.

Kazi Nabil Ahmed, MP said that there is a need to make more energetic and 
skilled Human Resources to make each and every sector of the country 
technology-based.

"We've to make a knowledge-based economy to build Smart Bangladesh," he said, 
adding that the government and the private sector should leapfrog the 
initiatives in this sector to make the Smart Bangladesh vision visible.

The ICT policies mainly focuses on data protection and cyber security along 
with ease of doing ICT business by streamlining tax incentives, including 100 
percent CIT exemption for the ICT/software industry, 10 percent export 
subsidies, VAT exemption on local bills during production. Additionally, 
initiatives to attract foreign investment include 100 percent tax exemption 
for income from software development, 2 percent duty on ICT related hardware 
imports etc.

The ICT industry emphasizes achieving a $50 billion ICT GDP by 2041, which 
entails increasing the sector's contribution to the National GDP from less 
than 1 percent to 2-3 percent by 2041.

In his presentation, Shaheem Ahsan said withdrawal of incentives and policy 
support would directly impact local and foreign investment, worsen 
unemployment and brain drain situation, put pressure on currency reserve, 
increase risk of data sovereignty and national cyber security and increase 
the cost of automation towards SMART transition.

DCCI president Ashraf Ahmed, CCCI president Omar Hazzaz, CSE chairman Asif 
Ibrahim, UGC member Dr Md Sazzad Hossain, FBCCI senior Vice President Md Amin 
Helaly, Policy Exchange Bangladesh Chairman Dr M Masrur Reaz, Founder and CEO 
of Bdjobs Ltd Fahim Mashroor, Policy Adviser of CRI Imran Ahmed, Vice 
President of VCPEAB Mohammad Zahirul Islam spoke, among others, on the 
occasion.

The leaders in the IT industry also have asked for the tax exemption to be 
extended for 03 years. They believe keeping this exemption is crucial as 
removing same will diminish profitability and reduce reinvestment 
capabilities for IT /ITES companies, resulting in slower industry growth and 
diminished export potential.