BACCO Calls for Revoking Supplementary Duty on Internet Services

The Bangladesh Association of Contact Center and Outsourcing (BACCO), a leading trade body of the country’s information technology sector, has urged the National Board of Revenue (NBR) to revoke the 10% supplementary duty imposed on internet services to ensure the sustained growth and increasing export revenue of the IT sector.

Expressing concern over the NBR’s ordinance issued on January 9, 2025, which imposed the supplementary duty, BACCO highlighted that the move could hinder the dynamic development of the IT sector.

BACCO President Tanvir Ibrahim said, “Internet service is a critical infrastructure for the IT industry. The imposition of this duty will significantly increase the production costs in the IT sector. This could result in Bangladesh’s IT industry losing its competitive edge in international markets. Moreover, there is a risk of reduced interest from domestic and foreign investors, which could negatively impact the creation of new employment opportunities.”

Echoing similar concerns, BACCO Secretary General Faisal Alim stated, “Bangladesh earns a substantial amount of foreign currency through the export of IT services to international markets. The export revenue from this sector has the potential to reach 5 billion USD in the near future. However, maintaining this growth trajectory requires policy support and tax simplification.”

BACCO emphasized that internet services are indispensable as an infrastructure for the IT industry. For the sector’s survival and overall advancement, internet access remains a crucial component. The organization has, therefore, strongly appealed for the immediate withdrawal of the supplementary duty on internet services to support the growth of the IT sector and achieve export targets.