Well the parliamentary debate for 2015-2016 Budget is on its way, and the first stream of announcements has struck the ICT sector really hard. So here’s a look at five of the major announcements that will be effecting the ICT sector.
1. 4% VAT on Online Trading:
The government has proposed a 4 percent value added tax (VAT) on online trading for the nest fiscal year. The imposition of this value added tax has caused a stir on virtual media raising questions on the government’s ‘Digital Bangladesh’ vision.
2. LCD, LED and Optical Fiber Prices to Increase:
The government has proposed to raise the tax on the import of LCD, LED and Optical Fiber products by 5 percent (from 5 percent to 10 percent), in the next fiscal year. The argument behind this increase in import duty is that of the protection of the domestic producers and the development in the domestic industrial sector.
3. ICT Tax Holiday Extended Till 2024:
The tax exemption on the ICT industry has been increased by more than 4 years (from 2019 to June 2024). The government believes that this extension will help to build better infrastructural facilities and also attract investments from private and foreign individuals.
4. Tax to Increase on SIM Card Import:
The government has proposed a increase in tax for import of SIM and RIM card. The government had decreased the tax on import of SIM and RIM card for this fiscal year, but for the next fiscal they have proposed a tax of 20 percent on import of SIM and RIM cards.
5. VAT Exempted on Import of ICT Parts:
VAT on import of parts used in Information Technology and Telecommunication products have been exempted. Its a big step in the growth of the ICT sector and the implementation of the Vision 2021.