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Basis demands separate fund for software sector

10-month software export up 85pc

UNB,Dhaka
Bangladesh Association of Software and Information Services (Basis) yesterday requested the government to constitute a separate fund for developing the country's potential and flourishing software industry.
The Basis made the plea to Finance and Planning Minister M Saifur Rahman when its four-member delegation called on him at the Planning Commission.
Software business leaders informed the finance minister that agriculture and software sectors were jointly enjoying Tk 300 crore Equity and Entrepreneurship Fund (EEF), which was constituted by the government.
But, they alleged, agriculture sector is enjoying the lion's share of the fund due to absence of a suitable policy for software sector in this
regard.
Saifur assured the Basis leaders that he would consider their proposal, meeting sources said.
Acting General Secretary of Basis Fahim Mashrur told the news agency that they have also got another assurance from the finance minister regarding bank loan facilities with lower interest rates.
"Usually priority sectors get bank loans with lower interest rate. So software sector deserves it and that's why we have requested the minister to arrange bank loan facilities with low interest rate for the software industry," Mashrur said.
The meeting was told that the country exported software products worth Tk 66 crore during the last 10 months of last fiscal registering 85 percent growth rate. Some 60,000 professionals are now working with around 400 software companies in
the country and the sector has so far created Tk 300 crore domestic market.
Basis leaders hoped that the rapidly enlarging market size of software and information technology would rise to Tk 1,500 crore by 2008. They also expressed their gratitude to the finance minister for scrapping the 10 percent tax on software businessincome.
Saifur in his budget speech on June 9 had proposed a 10 percent tax on software business income, which was called off at the time of passing the budget for 2005-2006 fiscal year.
Basis acting President TIM Nurul Kabir led the delegation. Directors Jahidul Hasan and Syed Faruk Ahmed were also present at the meeting.