In the proposed budget for the fiscal year 2024-25, Finance Minister Abul Hasan Mahmood Ali announced tax exemptions for 19 sectors within the Information and Communication Technology (ICT) industry. This initiative aims to support the government’s vision of creating a Smart Bangladesh by encouraging digital transformation across various domains.
The budget proposal was presented on Thursday, June 6, in the National Parliament, chaired by Speaker Shirin Sharmin Chaudhury and attended by Prime Minister Sheikh Hasina. This is the first budget presented by Abul Hasan Mahmood Ali as Finance Minister and marks the 53rd budget of the country, driven by the slogan “Commitment to Building a Happy, Prosperous, Developed, and Smart Bangladesh.”
Key ICT Sectors to Benefit from Tax Exemptions
Tax-Free ICT Sectors: The proposed tax exemptions cover a wide range of ICT activities, including the development and provision of advanced digital solutions. The sectors slated for tax relief include:
- AI-Based Solution Development: Encouraging innovation in artificial intelligence applications.
- Blockchain-Based Solution Development: Promoting the use of blockchain technology in various industries.
- Robotics Process Outsourcing: Facilitating the outsourcing of robotic and automated processes.
- Software as a Service (SaaS): Supporting the growth of cloud-based software services.
- Cybersecurity Services: Enhancing the development of security solutions to protect digital assets.
- Digital Data Analytics and Data Science: Boosting capabilities in data analysis and interpretation.
- Mobile Application Development Services: Promoting the creation of mobile apps.
- Software Development and Customization: Supporting bespoke software solutions.
- Software Test Lab Services: Facilitating testing environments for software quality assurance.
- Web Listing, Website Development, and Services: Encouraging web-based services and site development.
- IT Support and Software Maintenance Services: Providing ongoing support and maintenance for software products.
- Geographic Information Services: Promoting the use of GIS technology.
- Digital Animation Development: Supporting the creation of digital animations.
- Digital Graphics Design: Facilitating digital design services.
- Digital Data Entry and Processing: Streamlining data entry and processing services.
- E-Learning Platforms and E-Publication: Supporting online learning and digital publishing.
- IT Freelancing: Encouraging freelance work in the IT sector.
- Call Center Services: Promoting the outsourcing of customer support services.
- Document Conversion, Imaging, and Digital Archiving: Supporting the digital conversion and archiving of documents.
Conditions for Tax Exemption: These sectors will be tax-exempt provided that they ensure cashless transactions for business operations. The goal is to modernize financial transactions and integrate digital payment systems, making business activities more efficient and transparent.
This initiative is part of a broader strategy to accelerate digital adoption and innovation in Bangladesh, ultimately aiming to transform the country into a leading digital economy.