Bangladesh has granted tax exemptions to 9 more ICT services and many other tax cuts for the local industry.
In the upcoming budget, cloud services, e-learning platforms, mobile apps, system-link, e-book platforms, app developers, and freelancers got tax relief for the fourth Industrial Revolution (4IR).
Due to this progressive stance, a country like Bangladesh is getting hailed as a “standout regional star.” Even though it emerged years after Pakistan but seems to win the race, Pakistan is losing the game due to the excessive focus of Pakistan on building taxes rather than developing industries.
Bangladesh gives further tax exemptions to IT industry in the upcoming budget, among many other tax cuts for local industry.
Pakistan seems fixated on short term tax collection targets, rather than long-term development of the industry. https://t.co/hTi7BntelA
— Umar Saif (@umarsaif) June 2, 2021
Moreover, Bangladesh’s GDP growth rate is also high as ‘it had grown by 9% over the past year, claimed Bangladesh’s Cabinet Secretary. For now, it is 7.9% that turns the foreign exchange reserve value into $41 billion, whereas Pakistan’s rate is 1.5% with $ 20 billion.
In a recent scathing analysis, the media giant -Bloomberg said,
“In 1971, Pakistan was 70% richer than Bangladesh; today, Bangladesh is 45% richer than Pakistan”.
One of the economists also grimly highlighted that ‘it is in the realm of possibility that we could be seeking aid from Bangladesh in 2030’.
PM Imran Khan approved The Money Bill withdrawing around 80 income tax exemptions this year in the National Assembly. However, the FBR then began identifying individuals and companies availing the tax exemptions. It further issued show-cause notices to 70,000 individuals.
Pakistan needs strategic tax exemption planning to let sectors develop individually. Pakistani IT industry had already warned the government against withdrawing exemptions, saying that it would hinder their growth. With time, they also kept stressing about the provision of facilities to the IT industry.
“Bangladesh’s neighbors, including Pakistan and India, have much to learn from its success,” said Bloomberg.