Facebook to appoint Bangladeshi representative soon
- A Monitor Report01 Nov, 2019 | 114 Views|-+
Dhaka : Facebook will appoint a representative from Bangladesh soon to ensure payment of value-added tax from their advertisement earnings from Bangladesh market, much to the relief of the revenue authority.
The announcement came in a meeting recently held between Telecom Minister Mustafa Jabbar and eight Facebook officials.
A recruitment advertisement for 'Public Policy Manager, Bangladesh' has been already circulated by the popular social media company.
"Facebook said they will comply with all the request of the government as soon as possible but it will not be sustainable for them to set up an office in Dhaka right now," said Md Jahurul Haque, Chairman of Bangladesh Telecommunication Regulatory Commission.
Digital advertisement currently accounts for a lion's share of companies' advertisement budgets, but the National Board of Revenue hardly sees any VAT flowing in from the digital platforms as those have no VAT registration.
Every year, Facebook, YouTube and Google earn more than BDT1,000 crore from Bangladesh. The NBR took it very seriously and sought help from the BTRC to ensure that the tech giants set up shop in Bangladesh.
In the new VAT law, effective July 1, the NBR made it mandatory for the tech giants to either set up offices in Bangladesh or appoint agents such that the government can collect VAT on the advertisements made on their platforms by local firms.
As per rules, the NBR is supposed to get 15 per cent in VAT and another 4 per cent in advance income tax.