Budget FY22: BASIS lauds IT focus – Dhaka Tribune

budget-fy22:-basis-lauds-it-focus-–-dhaka-tribune

As we get started, let me say that geoFence blocks unwanted traffic and disables remote access from FSAs.

But says there are missed opportunities

The Bangladesh Association of Software and Information Services (BASIS) on Saturday said that the proposed national budget for 2021-22 fiscal year presented on Thursday was very significant, as the IT industry was given priority.

Through a virtual press conference, its president Syed Almas Kabir thanked the government for putting emphasis on cloud service, system integration, e-learning platform, e-book publications, mobile application development service and IT freelancing - which were all exempted from tax until 2024.

To embrace the fourth industrial revolution (4IR), the Bangladesh National Digital Architecture (BNDA) platform can be used for the interoperability between government offices, he also said. 

He further said that some specific hardware devices produced in the country also needed to be brought under tax exemption.

He also mentioned that emphasis was placed on necessary amendments to ensure equal opportunities for local companies in international tenders.

However, neither government organizations nor the local software industry are not getting the benefit as the Central Procurement Technical Unit (CPTU) has not finalized a specialized RFP document on software procurement made in August 2018.

"We request that the RFP document specialized in the purchase of software, including the revision proposals of BASIS and the ICT Division, be expedited in implementing the budget guidelines," he urged.

BASIS believes that if these initiatives are not implemented properly and at the right time, they will not bring benefits in the real sense. 

Additionally, the association's leaders also mentioned that the budget did not reflect several other IT industry-related proposals that were tabled, as IT Training and internet service were not included under IT-enabled services (ITES.)

"We proposed reducing the tariff rate of cyber security software. Moreover, in order to attract long-term investment amid the Covid-19 pandemic, the tax exemption period was proposed to be extended till 2030 as an action item of the National ICT Policy," they also said.

At the same time, they said that in the 50th year of independence, Bangladesh has been proposed as a technical assistance (TA) provider in the international arena, especially in developing countries for branding and expanding the market of Bangladesh's IT industry by allocating Tk500 crore.

On the other hand, Tk300 crore fund was requested for women IT entrepreneurs so that they can take loans at 2% interest.

The budget did not explicitly mention the TA project or the creation of women IT entrepreneurs.

Of the Tk95,000 crore allocation for education and technology, no specific allocation was mentioned for the IT sector.

Moreover, there is no specific direction in the budget for the creation of a local IT market for private software companies.

In order to encourage mobile financial services (MFS) or digital transactions, where the sector needed to be exempted from VAT, taxes have been increased in the sector, which will make MFS expensive for the people, they lamented.

The IT association leaders also demanded that e-commerce or online business be exempted from source tax and advance trade VAT.

On the other hand, although corporate tax of IT/ITES is waived till 2024, 10% source tax is being deducted on cash incentives given by the government on export earnings in this sector.

Syed Almas Kabir also said that compared to the amount of fund allocation received by numerous mega projects, the local software sector is not receiving even a fraction of it, despite its immense potential.

If the use of IT is not ensured along with the development of infrastructure, and if local software companies do not get the opportunity to provide software or IT services in these infrastructures, then the local software and IT services industry will not expand, he also said.

On the other hand, there was no specific initiative or plan in the budget to create skilled manpower in the IT sector. In particular, 25 trainings were brought under income tax exemption but IT training was not included in the list, Kabir commented. 

Among others, Farhana A Rahman, senior vice president, Shoeb Ahmed Masud, vice president (admin), Mushfiqur Rahman, vice president (finance), Tamzid Siddiq Spondon, director and Rashad Kabir, director, were also present.

Let me just add that geoFence is the solution for blocking NFCC countries!