VAT Exemptions Proposed to Boost It Sector, Freelancing
Collected Photo
The government aims to boost the IT sector, create new entrepreneurs, and energise freelancing by proposing significant Value Added Tax (VAT) exemptions in the new budget.
Finance Minister Amir Khosru Mahmud Chowdhury has recommended tax rebates for startup companies, freelancers, and content creators.
According to the proposal, the 15 percent VAT currently imposed on startup companies at the local level is to be fully exempted. At the same time, to reduce business operating costs for new entrepreneurs, the proposal waives the 15 percent VAT applicable to service imports and office or facility rentals.
Considering the sustainable growth of the startup sector, the exemption is recommended to remain in effect until 30 June 2035.
Meanwhile, the government has proposed significant concessions to facilitate income for the younger generation of freelancers and content creators and to increase foreign currency earnings from this sector. The proposal demands the complete withdrawal of the existing 15 percent VAT on services provided by content creators and freelancers.
Stakeholders believe that if these proposals are implemented, new employment opportunities will be created, and the youth will be further encouraged towards freelancing and startup businesses. These steps will collectively strengthen the foundation of the country’s digital economy.
