Corporate
Budget Proposes Tax-Free Status for 19 ICT Sectors in 2024-25
In the proposed budget for the fiscal year 2024-25, Finance Minister Abul Hasan Mahmood Ali announced tax exemptions for 19 sectors within the Information and Communication Technology (ICT) industry. This initiative aims to support the government’s vision of creating a Smart Bangladesh by encouraging digital transformation across various domains.
The budget proposal was presented on Thursday, June 6, in the National Parliament, chaired by Speaker Shirin Sharmin Chaudhury and attended by Prime Minister Sheikh Hasina. This is the first budget presented by Abul Hasan Mahmood Ali as Finance Minister and marks the 53rd budget of the country, driven by the slogan “Commitment to Building a Happy, Prosperous, Developed, and Smart Bangladesh.”
Key ICT Sectors to Benefit from Tax Exemptions
Tax-Free ICT Sectors: The proposed tax exemptions cover a wide range of ICT activities, including the development and provision of advanced digital solutions. The sectors slated for tax relief include:
- AI-Based Solution Development: Encouraging innovation in artificial intelligence applications.
- Blockchain-Based Solution Development: Promoting the use of blockchain technology in various industries.
- Robotics Process Outsourcing: Facilitating the outsourcing of robotic and automated processes.
- Software as a Service (SaaS): Supporting the growth of cloud-based software services.
- Cybersecurity Services: Enhancing the development of security solutions to protect digital assets.
- Digital Data Analytics and Data Science: Boosting capabilities in data analysis and interpretation.
- Mobile Application Development Services: Promoting the creation of mobile apps.
- Software Development and Customization: Supporting bespoke software solutions.
- Software Test Lab Services: Facilitating testing environments for software quality assurance.
- Web Listing, Website Development, and Services: Encouraging web-based services and site development.
- IT Support and Software Maintenance Services: Providing ongoing support and maintenance for software products.
- Geographic Information Services: Promoting the use of GIS technology.
- Digital Animation Development: Supporting the creation of digital animations.
- Digital Graphics Design: Facilitating digital design services.
- Digital Data Entry and Processing: Streamlining data entry and processing services.
- E-Learning Platforms and E-Publication: Supporting online learning and digital publishing.
- IT Freelancing: Encouraging freelance work in the IT sector.
- Call Center Services: Promoting the outsourcing of customer support services.
- Document Conversion, Imaging, and Digital Archiving: Supporting the digital conversion and archiving of documents.
Conditions for Tax Exemption: These sectors will be tax-exempt provided that they ensure cashless transactions for business operations. The goal is to modernize financial transactions and integrate digital payment systems, making business activities more efficient and transparent.
This initiative is part of a broader strategy to accelerate digital adoption and innovation in Bangladesh, ultimately aiming to transform the country into a leading digital economy.
Corporate
bdapps Hosts Top Developers Meetup
The bdapps community gathered for a momentous occasion at the “bdapps Connect: Engage & Innovate 2024 – Top Developers Meet & Greet,” held at the Robi Axiata Ltd. Head Office. The event united leading developers from the bdapps ecosystem for a day brimming with insightful discussions, interactive activities, and valuable networking opportunities.
The event was graced by prominent leaders from Robi Axiata Ltd., including Shihab Ahmad, Chief Commercial Officer; Shafiq Shamsur Razzaq, General Manager – Digital VAS & New Business; and Fatema Nashrah, Manager. Md. Altamis Nabil, Business & Engagement Lead at bdapps, along with key members of the bdapps admin team, were also present to engage with the developer community.
Adding star power to the gathering, renowned content creator and entrepreneur Rafayat Rakib, Founder of Digital Dropouts and Official Trainer & Mentor at Fiverr, attended as a special guest. He enthralled the audience by sharing his inspiring entrepreneurial journey, offering valuable industry insights, and motivating developers to expand their entrepreneurial horizons.
A key highlight of the event was the engaging activities, where the top developers were divided into teams to participate in interactive games and brainstorming sessions. The teams competed in an “App Idea Generation Competition,” where they showcased their creativity by pitching innovative app ideas aimed at solving real-world problems. The competition encouraged teamwork and highlighted the developers’ ingenuity. The best-performing team and standout individuals were recognized with exclusive prizes from bdapps, making the event a memorable experience for all participants.
The program concluded on a high note with an inspiring speech by Shihab Ahmad, who praised the developers for their pivotal role in transforming bdapps into a thriving hub of innovation. He acknowledged their contributions and encouraged them to continue driving forward. Additionally, Shafiq Shamsur Razzaq emphasized the importance of collaboration and ongoing learning to foster a future-ready digital community.
“bdapps Connect: Engage & Innovate 2024” successfully celebrated the achievements of the developer community while motivating them to push the boundaries of creativity and innovation in the digital space.
bdapps, a local app store and API hub, enables content providers and application developers to monetize their apps. With more than 50,000 developers working on the platform, bdapps is a flourishing ecosystem that continues to drive digital innovation and entrepreneurship.
Corporate
Citycell says its licence was cancelled illegally, it wants it back
Pacific Bangladesh Telecom, the first mobile phone operator in the country, seeks to relaunch Citycell.
The company has recently applied to the Bangladesh Telecommunication Regulatory Commission (BTRC) to reclaim its licence and spectrum.
In 2016, the BTRC shut down Citycell’s operations on the grounds of a decline in subscribers and failure to pay outstanding dues. Later, in October 2023, the regulatory body officially cancelled Citycell’s licence and spectrum. At the time of its closure, Citycell, the country’s only CDMA (Code Division Multiple Access) technology operator, had around 15,000 subscribers.
However, in its recent review application letter, Pacific Bangladesh Telecom stated that BTRC’s order to cancel Citycell’s licence was illegal.
Pacific Bangladesh Telecom in the application, signed by its head of regulatory and corporate affairs Nishat Ali Khan, argued that Citycell was excluded from various technological upgrades, including spectrum allocation, due to political decisions by the then government.
Despite paying all fees, new claims of outstanding dues were raised unjustifiably, it said. Ultimately, the operation was shut down citing a decrease in subscribers, even though Citycell had an annual turnover of over Tk200 crore before the closure, said the company.
Nishat told the news reporter that they plan to return to court, deeming BTRC’s cancellation of Citycell’s licence illegal while the case concerning outstanding dues is still ongoing in court.
“We have applied to the BTRC to get the licence back, and we will also appeal to the court in the future,” he said.
In the letter, Pacific Bangladesh Telecom stated that at the time of Citycell’s shutdown, the company held 8.82 GB of spectrum and had 850 towers. The closure left 1,000 employees unemployed overnight.
It also claimed to have fully paid all types of fees, including VAT and taxes. As a result of the shutdown, the company said it incurred debts amounting to Tk4,000 crore. If Citycell had remained operational, it could have generated at least Tk2,000 crore in revenue during the period until now.
The letter mentioned that BTRC’s claim of Tk218 crore in outstanding dues, which led to the cancellation of Citycell’s licence, was incorrect. The company argued that although the BTRC demanded the amount for 10 GB of spectrum, Citycell was actually allocated 8.5 GB of spectrum. Therefore, the claim lacked justification, it said, adding that the matter of outstanding dues was already being contested in court.
When asked why it did not approach the court at the time against BTRC’s decision, Nishat said, “The cancellation of Citycell’s licence was a political decision by the government. The court would not have ruled against the government’s decision. That’s why we did not file a petition in court back then.”
When asked whether it would be possible to relaunch Citycell with its significant debt if BTRC reinstated the licence, Nishat responded that despite the shutdown, the company has not defaulted on any bank loans.
Citycell eyes transition to GSM technology
He further said that if the licence is restored, the owners are prepared to transition Citycell from CDMA to GSM technology to resume operations.
Asked by the news reporter, Aminul Haque, acting chairman of the BTRC, declined to comment on the receipt of the letter or the matter of returning the licence.
On 9 September 2022, all spectrum allocated to Citycell and the Radio Communication Equipment Licence was cancelled on 7 August of the same year. Subsequently, on 15 September 2023, the BTRC cancelled Citycell’s 2G service licence.
According to officials concerned, during the tenure of President Hussain Muhammad Ershad, Citycell was granted a licence in 1989. The service was launched jointly by Hong Kong-based Hutchison and Bangladesh Telecom Limited. They used analogue mobile technology. The mobile service was highly expensive and not accessible to the general public.
When the BNP came to power, in 1993, the domestic industrial group Pacific Motors and Far East Telecom acquired a 55% stake in Citycell. Of the stake, Pacific Motors held 37.95% and Far East Telecom held 17.51%. The remaining 44.54% of the shares were owned by Singtel, a Singapore-based telecommunications provider. The head of Pacific Motors is former foreign minister and BNP leader M Morshed Khan.
Before Grameenphone acquired its licence in November 1996, Citycell was the sole mobile operator in the country.
Corporate
Mobile Internet Services to be Restored, Users to Receive 5GB Bonus: Palak
ICT Minister Zunaid Ahmed Palak announced that mobile internet services will be restored from 3pm today (28 July). Additionally, all users will receive a 5GB internet bonus, valid for the next three days. The minister conveyed this information during a media briefing following a meeting between the Information and Communication Technology Division, Bangladesh Telecommunication Regulatory Commission (BTRC), and the Association of Mobile Telecom Operators of Bangladesh.
“It would take a couple more days to restore the internet if people were to be returned the remaining volume of their data packs which were lapsed during the internet blockout, that is why we decided to allot 5GB bonus for everyone,” said Minister Palak. He also expressed regret for the inconvenience caused by the internet service disruption.
Regarding social media platform restrictions, Palak stated that letters were sent to Facebook, TikTok, and other platforms on 28 July, with a response deadline of 30 July. The letter highlighted non-compliance with the country’s constitution and laws. Palak mentioned, “They have removed very few of the contents we asked them to delete. While extremists’ pages remain active, they have taken down 50 pages supported by the Awami League.”
Updates on social media restoration will be provided on 31 July. Palak cautioned against using VPNs, citing security risks.
During the briefing, Secretary of the Posts and Telecommunications Division Dr. Muhammad Mushfiqur Rahman, and BTRC Chairman Engineer Mohiuddin Ahmed were also present. The meeting included participants such as the National Telecommunication Monitoring Center’s DG, CEOs and CTOs of Mobile Financial Services like bKash, Nagad, Rocket, and Upay, as well as mobile operators Grameenphone, Robi, Banglalink, and Teletalk.
Minister Palak previously stated that the internet disruption was not intentional but was caused by the burning of three data centers and hundreds of kilometers of cables, resulting in a Tk500 crore loss for the telecom sector alone. He added that there were attacks at 17 locations in Dhaka Division, with Mohakhali’s data centers housing 18 IIG systems, which host 70% of ISP servers.