Software, ICT need special attention in budget: BASIS

The Bangladesh Association of Software and Information Services (BASIS) has demanded that at least 5 percent of the allocation for digitisation in the upcoming national budget be especially reserved for software and ICT items.

The government allocated Tk 9,242 crore to specifically ensure digital services for citizens through the implementation of 76 projects by some ministries and agencies in the current fiscal year. The figure was Tk 5,765 crore for fiscal 2016-17.

“This is a huge amount of money and almost all of it has been spent for infrastructure construction in the name of digitisation,” said Syed Almas Kabir, president of BASIS.

But digitisation cannot be ensured solely through infrastructure while leaving out software, he said.

The BASIS has prepared a budget proposal and is giving immense importance on this issue, he said adding that it has already shared it with the National Board of Revenue and would submit it before the finance minister soon.

All the ministries and divisions will get the allocation, the education ministry the highest, said the association.

If the government gives importance to the issue, the country's software sector will grow further which will fast track digitisation, he added.

The BASIS also demanded removal of procedural challenges to get a 20 percent government cash incentive on exports of their members.

Kabir also sought simplifying the process of getting a tax exemption certificate, which helps availing such benefits meant for the ICT industry.

The apex trade body of software and information service sector also urged the revenue regulator to lift value-added tax on all methods of internet usage.

Earlier, the Association of Mobile Telecom Operators of Bangladesh also demanded the same.

A 15 percent VAT is charged for internet usage through land connections while a 21.75 percent VAT, supplementary duty and surcharge for usage through mobile phones.