E-commerce Firms Delay Refunds

The e-commerce sector in Bangladesh is set to receive a boost as the government plans to exempt online marketplaces from value-added tax (VAT) on sales in the upcoming fiscal year budget. This move, based on information from the Ministry of Finance and the National Board of Revenue (NBR), aims to attract foreign direct investment and reduce business barriers. Under the proposed provision, online marketplaces will be classified and exempted from VAT on digital commerce. Currently, they only pay VAT on their own goods or services, not on the provision of services.

Scaling up methodology is proving to be a game-changer for emerging businesses in Bangladesh, enabling sustainable growth and exponential results. In a recent workshop titled "Scaling Up Business Growth Workshop," organized by prominent associations and eGeneration Limited, industry experts emphasized the significance of adopting this approach. Startup Bangladesh's Managing Director pledged ongoing support to startups, acknowledging their transformative role in the country's development.

The Netherlands government has launched the "Orange Corners Incubation Programme" in Bangladesh, providing support, skills, funding, and resources to young entrepreneurs. This initiative aims to transform their innovative ideas into sustainable businesses. The programme offers world-class training, funding opportunities of up to 50,000 Euros, and a global network to help entrepreneurs elevate their ventures. Applications for the programme are open until early June 2023. Selected participants will attend a selection boot camp in late June 2023, and the most promising teams will be onboarded to the first cohort in July 2023.

According to commerce ministry documents, numerous e-commerce companies in Bangladesh owe more than Tk 160 crore due to violations of the escrow system, causing funds to remain trapped in payment gateways. The escrow system was implemented in response to scandals where e-commerce firms accepted advance payments but failed to deliver products. It ensures that payments are made only after product delivery. However, several companies neglected this requirement. Out of the implicated firms, 14 have returned Tk 364 crore, while the remaining 13 are yet to issue any refunds.

Forbes, the renowned business publication, has released its annual 30 Under 30 Asia list, showcasing exceptional young leaders, entrepreneurs, and trailblazers under the age of 30. The list recognizes talent from across Asia and is divided into ten categories, with 30 individuals chosen for each category. Notably, several talented Bangladeshis have been included on previous lists, and this year, a group of remarkable individuals from Bangladesh has made the cut.

Bangladesh and India have commenced their 50 Start-ups Exchange Programme, with the first group of 10 start-ups completing a successful visit to India from May 8 to 12. These start-ups represent a diverse range of sectors, including e-commerce, health, transport and logistics, energy, education, and skill development. Under the program, 50 start-ups from each country will visit each other's countries, exploring new partnerships, expanding business relations, and sharing experiences and knowledge.