Pre-budget discussion "Tarunyer Budget" held to formulate expected policy

A pre-budget discussion styled as "Tarunyer Budget", sponsored by Daraz, was held recently at The Westin Dhaka. In this discussion program, policymakers got an opportunity to know about the expectations of the young generation.

It is expected that the forthcoming budget will reflect their expectations while formulating the country's policies. The discussion is expected to play a positive role in formulating a youth-friendly budget.

Planning Minister M. A. Mannan, MP, was the chief guest of the event. AHM Hasinul Quddus Rusho, Chief Corporate Affairs Officer, Daraz Bangladesh Limited; Samakal Advisory Editor Abu Sayeed Khan; Abul Kasem Khan, Former President of Dhaka Chamber of Commerce and Industry and Managing Director of AK Khan Telecom; Zia Ashraf, Founder and COO of Chaldal.com and many other top officials were also present at the program. 

Planning Minister M. A. Mannan said, "The e-commerce sector is making a positive contribution to our country's economy. However, a regulatory body needs to be set up on an urgent basis to address various issues prevalent in this sector. In addition, the government is working to provide necessary facilities to startups. However, the important thing is the budget should be prepared keeping in mind the needs of every people of the country." He also highlighted the need for increasing budget allocations in various sectors, including health and education.

Daraz Bangladesh Limited's Chief Corporate Affairs Officer AHM Hasinul Quddus Rusho said while proposing the possible amendments to be addressed in the upcoming budget (FY 2022-2023), "The e-commerce sector is making a significant contribution to the economic and social development of the country. By 2024, the volume of transactions in this sector will increase to more than 26 thousand crore taka per year. At present, Bangladesh ranks 46th in the global ranking of e-commerce ventures. In order to take this important and dynamic sector forward, it is necessary to add a definition of 'online marketplace', which only addresses the retail business and does not cover the marketplace modality of e-commerce business. We urge the government to provide clarity on the said definition to make the vat law as per global standard which will aid the e-commerce sector to flourish. We have recommended to the NBR to digitize the procedure for keeping record of VAT invoices."

He further stated, "A decision to grant exemption from the minimum turnover tax that add minimal amount to the direct tax collected by the National Board of Revenue from this 'infant industry' would enable this industry in long run to make a significant contribution to the government exchequer. At the same time, the 0.50 percent cap (of the total business turnover) on promotional expenditure under the Income Tax Ordinance is not sufficient for new industry and may be reconsidered."