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DHAKA, June 13, 2026 (BSS) - Bangladesh is banking on its rapidly expanding freelancing and outsourcing sector to help achieve its ambitious goal of becoming a one-trillion-dollar economy by 2034, with the government rolling out sweeping tax incentives, startup support, digital infrastructure projects and skills development programmes to unlock the potential of millions of young people.

Finance Minister Amir Khosru Mahmud Chowdhury underscored the importance of empowering the country's youth through digital entrepreneurship, startups and freelancing as part of a broader strategy to accelerate economic growth and employment generation while unveiling the national budget for Fiscal Year 2026-27 (FY27) on Thursday last in the parliament.

He said "Special emphasis is being placed on leveraging their skills and innovative capacities to promote startups, freelancing and digital entrepreneurship." 

According to the government's strategic vision, investment, productivity and sustainable job creation will be the primary drivers of economic expansion, with the democratization of economic opportunities forming a key pillar to harness the country's demographic dividend and convert it into a "Democratic Dividend".

The Information and Communication Technology (ICT) and Telecommunications sector, which currently contributes only 1-2 percent to the country's Gross Domestic Product (GDP), has been targeted to raise its contribution to 10 percent within the next five years.

Highlighting the employment potential of the digital economy, the finance minister said, "We have set a target of creating 2 lakh new jobs annually in the technology sector. In addition, through extensive training in freelancing and creative industries at the college and university levels, we aim to generate a further 8 lakh indirect employment opportunities."

The government considers the country's talented youth population as its greatest asset and believes that, with adequate support, Bangladesh has the potential to establish world-class technology hubs comparable to leading global innovation centres.

To accelerate the growth of outsourcing and freelancing, the government has extended tax exemptions previously limited to IT freelancing for all categories of freelancing income. In addition, all income derived from content creation has been made completely exempt from income tax.

"At present, tax exemption is available only for IT freelancing income. I propose extending this tax exemption to all categories of freelancing income. This will encourage freelancers to send their earnings through formal banking channels and bring such income into the country through legitimate means," said the finance minister.

He also announced further incentives for the country's growing digital content industry, saying, "I also propose making all income from content creation completely free from income tax."

Content creators and freelancers have also been granted full exemption from the existing 15 percent Value Added Tax (VAT) on their services.

To strengthen the startup ecosystem, registered startup enterprises will enjoy exemption from the 15 percent VAT on services, imported services and premises rental until June 30, 2035. A zero percent turnover tax rate has also been proposed for startups and technology-based businesses.

The proposed national budget for fiscal FY27 includes a Tk 500 crore Startup Fund to support young and women entrepreneurs in the IT sector.

"Considering the potential of the information technology sector, I propose an allocation of Tk 500 crore in the FY27 to encourage new entrepreneurs in this sector,” said the finance minister, adding, “This fund will be used as a 'Startup Fund' to support the development of women entrepreneurs, women's advancement, and young entrepreneurs."

Recognising the importance of digital connectivity in expanding outsourcing opportunities beyond urban centres, the government is establishing a National Fibre Bank to ensure affordable high-speed internet access in remote and rural areas.

The government has also set targets to bring 5G coverage to 90 percent of the population and guarantee broadband internet speeds of 100 Mbps.

As part of efforts to improve efficiency and transparency in digital services, implementation of the "One Citizen, One ID, One Digital Wallet" system is underway, enabling citizens to access public and private services through a single digital identity.

To make digital devices more affordable and support the digital workforce, the government has proposed full withdrawal of import duties, VAT and supplementary duties on laptops, desktop computers, computer printers and computer monitors.

At the same time, domestic production of digital devices is being encouraged through a reduction in Advance Income Tax (AIT) on 22 raw materials used in mobile phone manufacturing to 1 percent.

The government is also integrating Artificial Intelligence (AI) into the education system to prepare the younger generation for future workplaces while deploying the technology to improve public service delivery and data analysis.

To enhance the global competitiveness of Bangladeshi freelancers and outsourced service providers, a Smart Skill Bank and a verification programme are being introduced to issue internationally recognised digital certificates to skilled workers, helping build confidence among foreign employers.

In addition, 1,000 foreign expert trainers and 7,500 domestic trainers are being engaged to upgrade technical institutions and polytechnics and strengthen the country's skilled workforce.

Officials believe that the combined impact of tax incentives, digital infrastructure, startup support, technology adoption and large-scale skill development will help unlock the vast potential of Bangladesh's outsourcing and freelancing sector, creating employment opportunities and boosting the ICT sector's contribution to the national economy as the country advances towards its trillion-dollar economic target by 2034.