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IT Industry Delegation meets Finance Minister on Tax Issue. No AIT on Software Export
21 Jul 2011

An IT inustry delegation, comprising BASIS and BCS EC members, met Finance Minister Mr. Abul Mal Abdul Muhit on 21st July (Thursday) to discuss on several tax issues and other industry related issues. The delegation included Mahboob Zaman, President BASIS, Mostofa Jabbar, President BCS, Fahim Mashroor, Senior Vice President, BASIS, Farhana Rahman, Vice President BASIS, Forkan Bin Quasem, Secretary General, BASIS and Mazibur Rahman Sawpon , Secretary General BCS. NBR Chairman Dr. Nasiruddin Ahmed and other senior officials were also present.

The delegation shared concern about some tax decisions with regard to the recently passed budget. The issues were new imposition of AIT on Export of software/ITES by certain banks, problem with VAT on Software and ITES, new duty on Fiber optic cable and computer monitors etc. The delegation also requrested the Finance Minister to withdraw the existing 15% VAT on Internet.

Finance Mininster assured the delegation about reviewing the tax decisions related for the software and IT industry. The NBR official also assured that no AIT will be chargable on Software income (both by company and individual) and it will immediately instruct the banks not to deduct AIT on export income from software and ITES.

BASIS President also requested Finance Minister to consider the proposal of a crash program to train 10,000 IT professionals in next 2 years to address the HR problem of software industry and allocate Tk. 50 crore special fund for this purpose. Finance Minister assured the delegation on considering the proposal.

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