‘Tax exemption on IT sector to continue’

The information technology sector will continue enjoying the income tax exemption facility until the roadmap for its gradual withdrawal is outlined, said Salman F Rahman, private industry and investment adviser to the prime minister.

He said he had brought the tax exemption issue to the attention of Prime Minister Sheikh Hasina. The premier said the benefit cannot be continued forever.

"I then told her that they (IT sector players) don't want exemptions forever. They just want a plan -- exemptions for 3 to 5 years. She largely agreed on the gradual imposition of tax on the IT sector," Rahman said.

"I think it will be mentioned in the budget that tax will be slapped in two or four years so the industry people can understand what will happen next."

Rahman made the comments while speaking at a programme where the newly elected BASIS Executive Council (2024-26) took charge, at Radisson Blu Dhaka Water Garden Hotel in the capital on Monday.

The income tax exemption period for the software and information technology services sector is set to expire in June this year.

A Towhid, founder president of BASIS; Ahasanul Islam (Titu), state minister for commerce; Zunaid Ahmed Palak, state minister for posts, telecom and IT; Mahbubul Alam, president of the Federation of Bangladesh Chambers of Commerce and Industry, and Russell T Ahmed, president of the Bangladesh Association of Software and Information Services (BASIS), also spoke at the event.