E-cab demanded forlong-term VAT-free e-commerce sector in the interest of the government toimplement the vision of digital Bangladesh.

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

They said that ifwithdrawal of VAT in e-commerce, the government would increase the revenueearnings indirectly by creating employment, increasing transparency inpurchasing and increasing consumer purchasing power in this sector.

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

The organization hasdemanded the withdrawal of 7 percent VAT in this budget, and the sale of onlinegoods and services, as defined by the National Digital Commerce Policy-2018 andBangladesh Gazette defined in January, is considered as separate service. Apartfrom allocating new service codes, keep the previous SRO (S099.50).

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

Referring to thee-commerce sector in neighboring countries including India, VAT has not beenavailable at the initial stage, she said, "There are not many VAT ine-commerce in many countries yet. This VAT will also hamper the distancebetween villages and cities that started in the country. There will be a chanceto create new jobs. Unemployment will rise in the head. Especially in the homeof small and women entrepreneurs, the country\'s economy is going to die, thedeath will be the death.”

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

Referring to the e-Cabaiming to create more than one million jobs across the country in the nextthree years, he said, currently around 50,000 entrepreneurs are directlyinvolved 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 andvarious e-commerce entrepreneurs and sector representatives were present at thepress conference.