e-CAB for withdrawing e-commerce source tax

The e-Commerce Association of Bangladesh (e-CAB) on Wednesday proposed the National Board of Revenue (NBR) to excise source tax on the e-commerce sector.

A delegation from e-CAB, led by its President Shomi Kaisar, put forward their demand to the NBR Chairman Abu Hena Md Rahmatul Muneem during a pre-budget discussion at the NBR headquarters in Dhaka.

The delegation also demanded bringing the entire VAT system under digitalisation as paperwork tends to slow down e-commerce businesses.

During the discussion, e-CAB demanded classifications or specifications of online marketplace and retail. They claimed that the lack of classification for online marketplaces is creating barriers for the business, as their activities are being considered as retail business.

e-CAB also called for withdrawal of VAT on rent of e-commerce warehouses, business offices, sorting houses, and fulfilment centres.

They demanded elimination of VAT inequality between e-commerce and conventional businesses.

e-CAB leaders claimed businesses with annual turnover up to 3 crores will need VAT registration.

However, e-commerce businesses with up to 50 lakhs turnover will not need VAT enlistment, only the business with annual turnover between 50 lacs and 3 crores would have to be enlisted.

e-CAB Vice President Mohammad Sahab Uddin and General Secretary Muhammad Abdul Wahed Tomal, among others, were present at the meeting.