Online shopping will be excluded from the purview of 5 percent value added tax (VAT) that was proposed on virtual businesses in the budget for FY 2018-19.

The proposed VAT will be applicable only for digital platforms -- Facebook, Youtube, Google, etc, said Md Mosharraf Hossain Bhuiyan, chairman of the National Board of Revenue (NBR).

He made the remarks at a post-budget press conference held in Dhaka today.

In 2015, Finance Minister AMA Muhith tried to impose a 4 percent VAT on e-commerce, which he was forced to withdraw following pressure from stakeholders.

The IT and e-commerce entrepreneurs and business leaders have pushed the government to keep it out of the purview of VAT until 2024.

The e-commerce players have also urged the government to keep the digital shopping segment out of any tax until 2021.

The industry is now worth about Tk 2,000 crore a year, having about 40 percent growth per annum.