On this years’ budget FY (2019-20), 7.5% VAT have imposed on virtual business to be specific e-commerce Business. In this regard e-commerce business owners gathered at a roundtable organized by Bangladesh Association of Software & Information Services (BASIS) Standing Committee on Digital Commerce.
The roundtable took place at BASIS auditorium in Dhaka on Wednesday (Jun 19). Syed Alams Kabir, President of BASIS presided over the roundtable.
At the roundtable Md. Abdul Wahed Tomal, General Secretary of e-Commerce Association of Bangladesh (e-CAB) was present. On behalf of BASIS, Farhana A Rahman, Senior Vice President, Didarul Alam, Director and Director In-Charge of BASIS Digital Commerce Standing Committee were also present.
From BASIS Digital Commerce Standing Committee Chairman Syed Mohammad Kamal, Co-Chairman Ashikul Alam Khan, Co-Chairman Zeeshan Kingshuk Huq, High Officials of bkash, Rocket, Uber, Pathao, Ipay system Limited, ShurjoMukhi Limited, PriyoShop.com, sindabad.com, AjkerDeal.com, bagdoom.com, Othoba.com, Chaldal.com, Hungrynaki.com, iferi.com, Gemsclip.com, Pickaboo.com, Rokomari.com, Property Bazaar Limited, Deligram, Sheba xyz, Evaly, e-Courier were present.
BASIS President highlighted that, in this years’ budget for ICT sector’s Development financial allotment has increased to 2176 core taka.
While ICT Division’s budget allocation has creased Taka 193 core in this year’s budget compared to last year’s revised budget. Besides, the govt. has allocated Taka 100 core fund for start-ups. Also govt has decreased VAT on Social Media Business from 15% to 7.5%. BASIS thanked hon’ble Finance Minister of the government in this regard.
"Digital commerce sector is growing in the country. But VAT has been increased from 0% to 7.5% in this sector. It will create hindrance on the growth of e-commerce sector. We would request to wipe out VAT in this sector for at least upcoming five years."
Farhana A Rahman, Senior Vice-President of BASIS said, "e-commerce is a growing sector. Imposing VAT will slow the pace of growth of this sector. We will urge National Board of Revenue (NBR) to revise their decision."
"Didarul Alam, Director, BASIS and Director In-Charge of BASIS Digital Commerce Standing Committee said, from 0% govt has imposed 7.5% VAT in this sector. This sector will lose its competitive edge because of this. I would urge the govt to exempt from e-Commerce."
Syed Mohammad Kamal, Chairman of BASIS Digital Commerce Standing Committee said, people are only getting use to e-commerce. Because of 7.5% VAT price will hike up at the online sites. People will lose their motivation to buy from online. VAT should not be imposed right now in this sector.
E-commerce owners also asked govt to exempt VAT from this sector for at least upcoming five years.
- Press release