ICT startups to get special incentives

The government has proposed a slew of special incentives for FY2022-23, including a 0.1 per cent reduction in turnover tax, in an effort to assist ICT startups get off the ground and run their businesses smoothly.

Finance Minister AHM Mustafa Kamal made the projection while proposing a Tk 6,78,064 crore budget for the next fiscal year in parliament, which is Tk 74,383 crore more than the last budget.

The minister proposed exempting startup businesses from all other types of reporting except filing an income tax return; removing expenditure restrictions; and lowering the turnover tax rate to 0.1 per cent instead of 0.6 per cent.

He also proposed allowing startup companies to set off and carry forward losses over a nine-year period, allowing them to use their competitive advantage to expand their business globally.

The digital economy has flourished as a result of the implementation of Digital Bangladesh. Exports in the ICT sector have already exceeded US $1.4 billion.

39 Hi-Tech parks/IT incubation are being set up across the country. Business activities are taking place in nine parks.

So far, these parks have received about Tk 2,000 crore as domestic-private investment and about US $439 million as foreign investment.