Different associations of the Information and Communication Technology (ICT) sector including Bangladesh Computer Samity and Bangladesh Association of Software and Information Services have recommended withdrawal of tax on their trading sections in the national budget-2005-2006 for the betterment of the sector.

The Bangladesh Computer Samity (BCS), the largest ICT association of the country, in its budgetary proposal, urged the government to withdraw tax on retailing of computer and its parts, which was imposed in 2003. Traders and importers of computer have been enjoying tax- environment in trading, importing and assembling. President of BCS SM Iqbal said that the computer retailers should also be allowed to sell computer and parts at free of tax for the next five years to rescue them from huge loss.

On the eve of expansion of ICT industry in the country, Iqbal also recommended withdrawal of tax on the income of ICT institutions for the next five years in a bid to strengthening the new sector in the country.

According to the recommendation of BASIS, the national trade association of software and ITES Industry of the country, has submitted a proposal to the National Board of Revenue (NBR) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in this regard.

In a bid to continue the development process of Bangladesh ICT Industry, vice president of BASIS Nurul Kabir urged for the extension of currently enjoyed income tax exemption facility for software business till 2010 which is going to expire by June 30 this year.

It also recommended to provide the similar tax exemption benefits to IT-Enabled Services (ITES) business as enjoyed by the software business; allowance of Accelerated Depreciation for procurement of Computer Hardware and Software by any business enterprise in the country; and allocation of two per cent ADP (Annual Development Program) budget in ICT Investment by the government.