‘7.5% VAT should be withdrawn from e-commerce’

State Minister for Post, Telecommunications and Information Technology Zunaid Ahmed Palak has requested National Board of Revenue (NBR) to withdraw 7.5 per cent VAT from e-commerce businesses.

“I have written a letter to the NBR requesting it to withdraw the proposed VAT of 7.5 per cent from e-commerce industry,” he told reporters after a programme in Dhaka.

This industry would not reach in that level from which VAT would be earned, he said.

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“The digital platform always ensures transparency in the financial industry which is given most priority by the government,” he said adding “Therefore, I think VAT should be withdrawn from the e-commerce industry”.

The minister’s call came five days after Finance Minister AHM Mustafa Kamal proposed Tk 524,190 crore budget of the fiscal year 2019-20 in which 7.5 per cent VAT was proposed on the industry.

In the previous fiscal year 2018-19 budget, the government proposed 5 per cent VAT on the industry which was withdrawn later.