E-Cab, a trade association of digital commerce traders, has proposed to the National Board of Revenue to digitalize the country’s e-commerce sector, including tax exemption at the source. The organization also hopes for a different definition of marketplace and retailer in the e-commerce sector, withdrawal of VAT on rents of e-commerce warehouses or fulfillment centers and elimination of VAT tax inequality in e-commerce with conventional shops.
The proposals were made at an exchange meeting held on Wednesday (February 16) to formulate an e-commerce-friendly budget for the upcoming 2022-23 fiscal year. Board of Revenue Chairman Abu Hena Mohammad Rahmatul Munim presided over the function. Shami Kaiser, president of the association, led the 8-member delegation of e-Cab.
According to the presentation of e-Cab, according to the 42C of the Finance Act, 2016 (44), there is a minimum limit for Gross Receipts in the case of the minimum tax rate for those who have an industrial type, especially the minimum tax rate. In this case a minimum tax rate of 0.6% of Gross Receipts is levied on all companies except telecom and cigarette companies. Since e-commerce is not yet profitable, it is proposed to increase it to 0%.
“Last time the government revoked all VAT on e-books and online education in response to our request,” said Shami Kaiser, president of e-Cab. We have other problems like source tax and in some cases double taxation. These issues have been proposed by mentioning the provisions of the Act. Hopefully the Board of Revenue will consider the matter. We also want to cooperate with the government in collecting revenue but to ensure that it does not hinder the sector.
Mr. Mohammad Abdul Haque, Finance Secretary, e-Cab said, “We believe that further growth of e-commerce sector is required to reach the doorsteps of the people of Digital Bangladesh, so we have raised our demands in formulating e-commerce friendly budget.” Attention has been drawn to ensure that no member of the e-Cab is harassed by the Board of Revenue officials in the name of collecting VAT and tax.
It is also proposed to repeal the VAT invoice condition of the supplier and reduce VAT on takeaway or online food from 15% to 5%. Representatives of e-Cab presented their arguments in this regard.
Mr. Fahim Mashroor, Chief Executive of Ajker Deal, Mr. Mahmudul Hasan Sohag, Chief Executive of Rokmari.com, Mr. Jahangir Alam Shovon, General Manager of e-Cab, Mr. Aurangzeb Hossain, Foodpanda’s Representative, Mr. Samsul Alam Masud, Representative of Darajz and others were present in the delegation.
