The Monthly Techworld Bangladesh - July 2016

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Potential telecom sector with growing internet user, enriched connectivity, affordable availability of smart-phones, enhancement of social networking and growing online business show the dazzling future of ICT in Bangladesh. The users are getting familiar with online services, including profession, shopping and communication. This transformation is positively changing the consumer pattern and business nature. The implementation and the adaption of ICT results remarkably, in socio-economic development of the country. ICT has been considered as a changing tool for the economy, like us. Bangladesh is considered as an emerging market having large number of population as demographic dividend. And ICT is such a tool that can adopt to maximize the utilization of this dividend. Both the public and private sectors are keen to its developments. It has shown in the current budget for FY 201617, where the government proposed to increase allocation in ICT sector 54% more than last year. The company TAX remains same and the software SMEs is enjoying the tax freedom for its growth. But in some contexts, proposed VAT and TAX seem contradictory with the Vision of Digital Bangladesh. Imposing high tax increases the service cost and product prices and finally transforms into the sufferings of the end-user. The growth of development may go down, young entrepreneurs and investors may dispirit. The industrial harmony may disrupt. Industry like E-commerce needs more incubation rather to pay TAX. Government should understand the commercial issues of e-commerce as it is a new window of opportunity to grow. There are also some other Tax and VAT issues where government can consider the experts’ opinion. Read inside the details of proposed budget for FY 2016-17 with some leaders’ recommendation.