Good news for about six lakh freelancers in the country as they will now enjoy a 4% incentive against exporting software or IT services.
Freelancers who work in 55 marketplaces and who have been selected by the ICT ministry will benefit from the incentive, according to a Bangladesh Bank circular issued yesterday.
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A freelance services marketplace is an online site where businesses or individuals find and hire people to work remotely.
Popular marketplaces such as Upwork, Fiverr, Freelancer, and Guru were among the selected marketplaces.
Freelancers in Bangladesh will be boosted by the incentives they have long sought.
It is really encouraging that the government is now paying special attention to freelancers and this move will definitely boost them, said Rashad Kabir, Managing Director of Dream71 Bangladesh Ltd.
The government has been providing 10% cash assistance against the export of ICT products or services since 2018.
But, only institutional and independent IT companies that are members of BASIS are eligible for the job.
With the BB circular, almost all freelancers who are not BASIS members will benefit from a 4 percent bonus.
The decision is likely to propel the recruitment of freelancers who earn through official channels, as some of the money comes into the country through unofficial channels due to the lack of incentives.
“It is a common scenario in Bangladesh that many freelancers do not bring all of their remittances to Bangladesh. But with the introduction of an incentive mechanism, they will now be encouraged to bring all of their remittances. of their income in the country, which will also contribute to the country’s national GDP,” said Kabir, who is also the director of BASIS.
It came at a time when the government has set itself the target of increasing export earnings in the information technology and information technology-enabled services sector from around 1. $1 billion to $5 billion by 2025.
Bangladesh has six lakh IT services exporters or freelancers, and the number of team-based freelancers hovers around 1,600. Together they bring in about $500 million a year, according to people in the industry.
Many freelancers are also now growing up and setting up businesses, as companies receive 10% cash incentives on foreign exports.
The government should continue to provide them with facilities as their growth will not only bring more remittances to the country but also many jobs will be created, Kabir added.