Imposing VAT on e-commerce a major setback
Says BASIS E-Commerce Alliance
A 4 per cent value added tax (VAT) has been proposed on the trading of online goods and services (e-commerce) in the budget for the fiscal year 2015-2016. Due to this, the sector will probably face a decline in growth and development in the coming year, warns BASIS E-Commerce Alliance.
Members of BASIS E-Commerce Alliance, which is the representative of the countrys e-commerce sector, yesterday said this in a press conference held in the capital.
BASIS president Shameem Ahsan said, The 4 per cent VAT will be a severe barrier to the e-commerce sector. This may cause buyers to be reluctant to shop using e-commerce. Aside from that, there are many young companies invested in this sector and they may face difficulties.
That is why, for the e-commerce sector to grow and develop, we request that the e-commerce sector be VAT exempted for the next 3-4 years. We hope that the finance minister AMA Muhith and the members of the Parliament will give this issue the utmost importance in the budget.
The convener of the BASIS E-Commerce Alliance Fahim Mashroor said, adding a 4 per cent VAT on this will only create additional Tk 3-4 crore revenue for the government. On the other hand, this imposed VAT will hinder many scopes for employment and developing entrepreneurs in this sector. An in depth discussion took place in the program on the adverse effects of the newly imposed VAT and the speakers gave detailed clarification for its withdrawal.
The press conference was presided over by the convener of the BASIS E-Commerce Alliance Fahim Mashroor. BASIS president Shameem Ahsan, senior vice president Russell T Ahmed, secretary general Uttam Kumar Paul, treasurer and the co-convener Shah Imrul Kayeesh, executive director of BASIS Sami Ahmed, along with members from the BASIS executive committee and the BASIS E-Commerce Alliance Convener Committee were also present in the press conference.
