Tax to be imposed on Facebook-YouTube
Tax will be imposed on the income of virtual and digital media like Facebook and YouTube. Finance Minister Abul Maal Abdul Muhith delivered the information while placing budget for the 2018-19 fiscal year in the parliament on Thursday.
During budget speech he said, massive changes have come in the tendency and size of inter border transaction due to economic globalization and expansion of virtual and digital economy. For this reason the risk of tax avoidance has increased.
Finance Minister said, many foreign firms are earning huge money in Bangladesh through virtual and digital transaction but we are not getting enough tax from them. There was no provision in our existing law to bring these transactions under tax net as virtual and digital transaction is a new matter in our country.
He said, I propose to include necessary legal provisions in light of international better practice to impose tax on the income of virtual and digital sector like facebook, YouTube, Google in Bangladesh. Our tax net will expand thus.
He said, though we have started the practice of information technology later but we are at the advance level at the moment. We have already taken measure to develop our tax mechanism as modern and information technology friendly. With this continuation I am requesting to include provision of issuing notice through email into law.
The Finance Minister also proposed to include provision to share the tax payers’ financial information with the tax department automatically. He said, in this way facing tax evading cases will be easier.