The top IT trade body Bangladesh Association of Software and Information Services (BASIS) today said the proposed budget did not reflect the industry's demands for the development of the sector.

"The budget of the IT sector did not reflect BASIS's proposal as expected," Abu Daud Khan, vice president of the BASIS, said in a post-budget press conference in Dhaka.

The allocation for the IT sector in the budget has increased by 16.69 per cent or about Tk 274 crore as compared to last year's revised budget.

"However, there was no clear indication as to which projects or sectors the money would be spent on and how it would benefit the IT industry and its entrepreneurs."

"At the same time, to encourage start-up entrepreneurs, the budget is exempting start-up entrepreneurs from all types of reporting obligations except filing income tax returns," he said.

"We applaud the timely step taken by the government."

"In order to encourage foreign investment in the IT sector, we had proposed extending the tax exemption from 2024 to 2030, but this was not taken into account in the budget," Khan said.

On the other hand, local software and technology-based services (ITES) are now subject to a 5 per cent withholding value-added tax at the business level.

In addition, BASIS also proposed allocating at least 10 per cent of the budget for the internal development of all ministries and their affiliated agencies for the purchase of software and ITES.

"But we did not see any specific guideline in this year's budget."

Fahim Ahmed, vice president for finance at BASIS, and AKM Ahmedul Islam Babu, director of BASIS, were present at the press conference.