E-cab demanded for long-term VAT-free e-commerce sector in the interest of the government to implement the vision of digital Bangladesh.

The organization of e-commerce entrepreneurs organized a press conference on Tuesday at a hotel in the capital. The leaders of the organization say that in the budget e-commerce VAT will impede the creation of Digital Bangladesh.

They said that if withdrawal of VAT in e-commerce, the government would increase the revenue earnings indirectly by creating employment, increasing transparency in purchasing and increasing consumer purchasing power in this sector.

Presided over by E-Cab President Shami Kaiser, the meeting was attended by General Secretary of the organization Md. Abdul Wahed Tomal, Finance Secretary Mohammad Abdul Huq, members and directors of the e-CAB Executive Committee.

The organization has demanded the withdrawal of 7 percent VAT in this budget, and the sale of online goods and services, as defined by the National Digital Commerce Policy-2018 and Bangladesh Gazette defined in January, is considered as separate service. Apart from allocating new service codes, keep the previous SRO (S099.50).

Shomi Kaiser said that e-commerce is now one of the most discussed topics in creating bridges between buyers and sellers by removing barriers to time and distance. Just starting to develop, it is considered as a profitable sector of the government. At the same time, to bring VAT like Facebook and Google to VAT, digital transformation of the business will not only hamper the VAT on digital business, but also the double burden on entrepreneurs will be imposed. At the same time, the implementation of digital variance will also be under threat.

Referring to the e-commerce sector in neighboring countries including India, VAT has not been available at the initial stage, she said, "There are not many VAT in e-commerce in many countries yet. This VAT will also hamper the distance between villages and cities that started in the country. There will be a chance to create new jobs. Unemployment will rise in the head. Especially in the home of small and women entrepreneurs, the country's economy is going to die, the death will be the death.”

Mohammad Abdul Wahed Tamal said, there is no doubt to believe the government's revenue increase. However in the greater interest, emphasis short-term income certainly is not appreciable. It is required make the e-commerce definition clear. Those who do not have a physical store, only those who sell products online are demanded to keep VAT free. Because those who do online business, they make one-time VAT at the time of buying the product from the market. Even if they have to pay VAT again, they will have to pay two points. And this tax burden will eventually be put on the consumer. That means the increase in the price of the products online. Then someone will not lose interest to buy online.

Referring to the e-Cab aiming to create more than one million jobs across the country in the next three years, he said, currently around 50,000 entrepreneurs are directly involved with e-commerce. This VAT will be a serious risk to all of them.

Ajker Deal, Bagdum, Rokomari, Daraj, Chaladal, Pathao, Sheba XYZ, DinRatri, Sindhabad, Priyashop.com and various e-commerce entrepreneurs and sector representatives were present at the press conference.