Finance Minister Offers Tax Exemption to IT Service Providers

Finance Minister AHM Mustafa Kamal has suggested a four-year tax exemption for IT service firms in the next budget for FY 2021-2022.

"Until 2024, I suggest providing tax exemption to cloud service providers, system integration, e-learning platforms, e-book publishers, mobile application creation service, and IT freelancing," says the proposal." the minister said while unveiling the proposed budget of Tk 603,681 crore for the fiscal year 2021-22 on Thursday.

The finance minister also offered a 10-year tax holiday on the production of some IT hardware if it is built-in Bangladesh, subject to certain criteria.

This would help Bangladesh's digital transformation process, by making modern digital services more accessible to residents at a reasonable cost, and by assisting in the realization of the country's aim of becoming a digital Bangladesh, he added.