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3-year tax exemption for software, call centres

Staff Correspondent
Software development, data processing and entry and call centre business will get a three-year tax exemption with effect from July 2008.
However, the ICT (information communication tech-nology) stakeholders demanded such an exemption for a period of 10 years.
"To keep the income emanating from computer software development, data processing and entry and call centre, I propose these sectors tax-free from July 1, 2008 to 30 June 2011," said Finance Adviser Dr Mirza Azizul Islam in his budget speech yesterday.
In order to enhance investment in this sector the adviser proposed allocation ofTklOO crore to the IT Equity and Entrepreneurship Fund.
He said to ensure an easy access, relevant agencies including the Bangladesh Computer Council will be involved in the process of channeling this fund.
Mirza Aziz also proposed to reduce the duty on computers and its peripherals to 3 per cent from the existing rate of5 percent.
He, however, proposed a 30 per cent increase in the rate of normal depreciation on com-
puters from 20 percent.
"Wc are happy with the overall proposal. But it should be revised in some cases to develop the IT sector of the country," said Habibullah N Karim, president of Bangladesh Association of Software & information Services (BASIS).
He sought a 5-year tax exemption from software and call centers.
The BASIS chief said the proposed 30 per cent depreciation on computers should be fixed at 50 percent so that software businessmen can get rid of tax burden two years after the purchase of any computer.
Karim also suggested some allocation for the development of the hi-tech park at Kaliakoir and a massive marketing for exploring the country's new software export destinations.
Regarding the first-ever hi-tech park, the finance adviser in his speech said the first phase of infrastructure work on a 231-acre hi-tech park at Kaliakoir near Dhaka will be completed by the year-end.
"Efforts are underway to attract the private and foreign entrepreneurs to make investment in this IT park," he said.