AI, Blockchain, Robotics and SAS are being added to tax holiday
Finance Minister Abul Hasan Mahmud Ali will present the 2024-25 budget proposal to the nation through the National Parliament on June 6. The size of this budget will be 7 lakh 97 thousand crores. And the budget deficit will be estimated at 2 lakh 56 thousand crores.
As part of implementation of public interest and smart Bangladesh vision, this year's budget has increased the tax holiday for another three years under the condition of complete cashless transactions, but this time 27 sub-sectors are reduced to 19. New additions to the list this year are artificial intelligence (AI), blockchain, robotics, software-as-a-service (SAS) and data science. However, Nationwide Telecommunication Transmission Network (NTTN), system integration and cloud services are excluded from the tax holiday. At the same time, Internet service providers or ISPs have not been included in this list even after discussions for the past few years.
This information was confirmed by a source of the National Board of Revenue on condition of anonymity. According to sources, customers may have to spend extra while talking on mobile. If you recharge Tk. 100 on your mobile, you can talk for about Tk. 73. The mobile operators deduct the remaining 27 taka as VAT and supplementary duties. If the 5 percent supplementary duty on mobile services is increased in the proposed budget, the consumer will be able to talk for about Tk. 69.35.
Currently, the amount of VAT on SIM is Tk. 200. In future, this rate can be increased by Tk. 100, that is 50 percent to Tk. 300. Not only the cost of talking on mobile phone or SIM, but the cost of users will increase in many other places. The VAT rate on LED bulbs of 1 to 50 watts and tube lights of 18 to 36 watts may be increased from 5 percent to 15 percent. Within the electronic sector, the VAT rate may be increased by 5 percent on refrigerators and air conditioners. However, keeping in mind the goal of creating a smart Bangladesh, the import duty of laptops is being reduced. Currently, the total duty on laptop imports is 31 percent. It can be reduced by 20.50 percent.
According to sources, AI-based solution development as an ITES service in the coming year; Blockchain-Based Solution Development; Robotics Process Outsourcing; software-as-a-service; Cyber Security Services; Digital Data Analytics & Data Science; mobile application development services; Software Development & Customization, Software Test Lab Services; Web Listing, Website Development & Services; Geographic Information Services; Digital Animation Development; digital graphics design; digital data entry and processing; e-learning platforms and e-publications; ICT Freelancing; call center services; And document conversion, imaging and digital archiving are going to enjoy tax holidays.
