DHAKA : The central bank is likely to support a move to keep e-commerce transactions out of the purview of value added tax (VAT) for three to five years to encourage the country’s nascent digital economy, reports UNB.
An indication to this effect was made by the Bangladesh Bank governor Dr. Atiur Rahman on Sunday while he was addressing a function at Bangabandhu International Conference Centre in the city. The Bangladesh Association for Software and Information Services (Basis) and some online business firms engaged in e-commerce jointly organized the function on the occasion of launching their new alliance under the banner of Basis-e-Commerce Alliance. Dr. Atiur mentioned that Basis has been demanding the transactions under e-commerce be exempted from VAT for the next 3-5 years. “If it is allowed, it will help spread trading through e-Commerce. I think it’s possible for the government,” he said. The function was also addressed by FBCCI president Kazi Akram Uddun Ahmed and Basis president Shamim Ahsan and its vice president Russel K Ahmed.
The governor said many entrepreneurs have been showing their interest in e-commerce or online business. In recent times, online shopping or e-commerce trading have been gaining in popularity day-by-day. The buyers and sellers are choosing their products and making their transactions through credit or debit cards. This has brought about immense opportunities to enter into the global market for local firms.
“So it’s impossible to undermine the importance of the e-commerce for a country with a growing economy like Bangladesh,” the governor observed, adding that such online businesses have reduced the hazards of unnecessary movement.
He said that currently about Tk 200 crore is being transacted through e-commerce or online transactions annually. Bangladesh Bank has taken various measures to ensure their authenticity and security through introducing different systems and also giving appropriate instructions to banks. He observed that some 50 online or e-Commerce service portals are actively offering their services while about a hundred fashion houses are selling their products. More than 500 Facebook pages are engaged to promote the online products sale. It is mainly the young generation who are engaged in such businesses.