5 ICT trade bodies seek VAT, tax, duty exemption

The insiders also caution that this budget will set to increase 31.25% on laptop prices and internet price spike at least 10 %.

Five ICT-related trade bodies on Tuesday demanded exclusion of 11 measures, including 15% value added tax (VAT) on importing laptops, 15% on computer printing accessories and 10% Advance Income Tax (AIT) on Internet Service Providing business from the proposed budget for 2022-23 fiscal year.
The insiders also caution that this budget will set to increase 31.25% on laptop prices and internet price spike at least 10 %.
The demands were made at a joint press conference of the trade associations at the Tofazzal Hossen Manik Miah auditorium of the National Press Club in the city. They trade bodies are: Bangladesh Association of Software and Information Services (BASIS), Bangladesh Computer Samity (BCS), Internet Service Providers Association of Bangladesh (ISPAB), and Bangladesh Association of Call Centre and Outsourcing (BACCO) and E-Commerce Association of Bangladesh (e-CAB).
Bangladesh Computer Samity (BCS) president Engineer Subrata Sarker, BASIS Vice-President Abu Daud Khan, president of Internet Service Providers Association of Bangladesh (ISPAB) Md Imdadul Hoque, E-CAB president Shomi Kaiser, Bangladesh Association of Call Centre and Outsourcing (BACCO) president Wahid Sharif, former president Towhid Alam, BCS vice-president Rashed Ali Bhuyan, Secretary General Kamruzzaman Bhuyian, Direcetor Mohammad Zahirul Islam and Mohammad Monirul Islam spoke in the function.
President of Internet Service Providers Association of Bangladesh (ISPAB) Md Imdadul Hoque says that the increased taxation on optical fiber import will increase the price of broadband internet in the country.
"Optical fiber cables are the backbone of the broadband internet industry. If the prices of import goes up, ultimately the burden of the extra cost falls upon the users who pay the price," he says.
Although the finance minister reasoned that the move was to protect the domestic optical fiber manufacturing industry, Emdadul Hoque says that "the quality of domestic cables are not up to the mark" and that as of now, the service providers have "no option but to rely on imported cables to ensure good service".
In the briefing, BCS President Engineer Subrata Sarker said the VAT exemption should continue on computer and other instruments to prompt digitalization. He said hardware sector and IT infrastructure were neglected in the budget.
Moreover, the hardware imports have dropped as both small and big overseas manufacturing factories kept shut either partially or completely while freight charges have increased due to increasing the Dollar price.
Importers and businesspeople said that the dollar price hiking are highly linked for increasing tech products price.
Engineer Subrata said that the use of laptops, printers, tonner and other printing accessories as well as using of Internet may decrease due to price hiking.
"Many people may not buy technological products despite the need in different parts of the country, due to the increase in prices," he said.
"If the government imposes taxes on computer imports through the budget, it will turn into an obstacle to building a Digital Bangladesh," he said.
If the prices continues to rise, there will be a negative effect on the market, said the BCS president.
BASIS Vice-President Abu Daud Khan hailed the government for enhanced allocation for IT sector in the budget.
He said the draft budget made additional allocation of Tk2176 core for the IT sector, and Tk100 crore as start-up fund.
He, however, said many of their recommendations were rejected in the draft budget.
E-CAB president Shomi Kaiser demanded to VAT exemption for the sector for the next few years.
She also demanded for automation and introduction of latest software technology for issuing tax exemption certificates to avoid hassle and time. Under the planned system, applicants will get the certificates within one month of their application.