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Trade Bodies Urging Tax Exemption for Web Hosting and Cloud Services

Economic Tag: Vat & Tax

Trade bodies in Bangladesh’s ICT sector have urged the government to keep web hosting and cloud service companies tax-free to bolster data protection and localization. Local entrepreneurs currently hold only 10 percent of the $20 million market, and taxation could stifle their growth. This call comes as the government proposed a three-year tax exemption for 19 ICT businesses to promote cashless transactions and the digital economy, but excluded web hosting and cloud services from the exemption list for fiscal 2024-25. Ahmed, a sector representative, highlighted the importance of maintaining tax exemptions to support local ICT companies’ growth and urged the government to reconsider the 1 percent duty on imports of capital equipment for high-tech park investors, advocating for the continuation of the duty-free status.

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