e-CAB Calls for 15-Year Tax Relief to Catalyze Commerce, Connectivity and Cross-Border Growth

The e-Commerce Association of Bangladesh (e-CAB) has called for a 15-year tax exemption for e-commerce companies and urged stronger policy support to accelerate the sector’s growth. The organization presented five proposals during the pre-budget meeting of the National Board of Revenue (NBR) on Saturday, 25 April.

At the meeting, e-CAB stated that e-commerce is not merely a business sector but a key driver of the country’s digital transformation. Therefore, it emphasized the need for coordinated initiatives in tax policy, infrastructure, and regulatory support to foster the sector.

Speaking at the meeting, e-CAB General Manager and Head of Secretariat S M Ekramul Haque said that the e-commerce sector must be brought under more supportive policies to strengthen the country’s digital economy. He noted that the sector’s full potential is currently constrained by tax complexities, high VAT, and logistics costs, with small and medium entrepreneurs being the most affected. He stressed the need to rationalize the existing VAT structure on transactions conducted through e-commerce platforms. Additionally, he suggested that tax incentives on digital payments, online logistics, and delivery services would reduce costs and help keep product prices affordable for consumers.

In its proposals presented before NBR Chairman Md. Abdur Rahman Khan, e-CAB highlighted that a significant number of young entrepreneurs in the country are engaged in e-commerce-based businesses. However, many are struggling to sustain operations due to tax complications and procedural barriers. In this context, the organization underscored the necessity of introducing tax breaks or special incentive packages for startups and small entrepreneurs.

Furthermore, e-CAB emphasized the importance of enhancing transparency and efficiency in import-export processes to facilitate cross-border e-commerce. It noted that expanding access to international markets would enable local entrepreneurs to play a significant role in earning foreign currency.

Stakeholders expressed hope that the implementation of these proposals discussed in the pre-budget meeting would make the country’s e-commerce sector more dynamic and inject new momentum into the digital economy.

DBTech/SI/MIIM/OR