3:11 pm - Tuesday November 24, 7029

Budget response of VCPAB of the 2017-18 fiscal year

294 Viewed tasneem 0 respond
vcbpeba

Venture Capital and Private Equity Association of Bangladesh (VCPEAB) organized a press conference last Sunday, June 11 at the Krishibid Institute in Farmgate.The press conference was held in the light of the national budget for the fiscal year 2017-18 proposed by Honorable Finance Minister Mr. Abul Maal Abdul Muhith on June 1, 2017.  VCPEAB lauded the proposed budget for ensuring the proper implementation of current government’s election manifesto at the press conference, raising demands in order to offset the economic recession, initiatives taken for industrial development and establishment of Shonarbangla and actions to materialize the Digital Bangladesh Vision.  The speakers thanked the government for their special emphasis on alternative investment system and supporting them to grow and become dynamic. With the announcement of alternative investment in the budget, they hoped that this promising sector will be strengthened and country’s industrialization would get further accelerated. The speakers added that the progressive philosophy of the government would lead to further development of venture capital and private equity sector. The speakers thanked and congratulated the government and the Honorable Finance Minister in particular, for making the Alternative Investment Fund (in line with the RHH) tax free. They said, Alternative Investment Fund is a Bangladesh Securities and Exchange Commission (BSEC) regulated fund which is being brought under the trust framework. This will collect and mobilize funds for the small and medium enterprises entrepreneurs. The alternative investment fund will fund three types of projects, such as venture capital, i.e. less than two years old entrepreneurs, private equity, entrepreneurs of more than two years of age, and finally the impact fund, which will have an impact on socio-economic development rather than economic profit. Being tax-free, these funds will get more effective and more beneficial. This tax relief will bring great interests among the alternative investment fund managers and the investors.

VCPAB also urged the National Board of Revenue (NBR) for a tax relieves on the alternate investment funds andon the income of the asset management companies for these funds. Because of this tax relief, local and foreign investment in the information technology sector will increase significantly.

Speaking on the occasion, Chairman of the association and General Partner of Fenox Venture Capital Shameem Ahsan said, “There is a lot of good news for the IT sector in this year’s national budget.It includes the reduction of VAT on software, allocation of 3,974 crores in ICT Division, reducing VAT on laptops and mobile phones for the production of laptops. He also thankedPrime Minister, Finance Minister and ICT Minister for allocation of Taka 11,000 crores in the Ministry of Information Technology. In spite of tax exemption in almost all sub-sectors in the

Information Technology sector, 35 percent corporate tax on the ecommerce companies will prove to be a hindrance to the sector’s progress.

He said venture capital financing is very risky. As this is a new financial sector, there are many doubts among the investors. He called for corporate tax exemptions to nurture this sector. He also said it takes at least 7-8 years to get the invested money back. It is very difficult for them to survive during this period. Therefore they should be given tax waiver for at least 10 years. We believe that this tax holiday will be a great help from the government while building Digital Bangladesh for national development. In this context, we are making promises from VCPEAB to take part in the development of the country. Shawkat Hossain, Managing Director of BD Venture limited and VCPEAB General Secretary said, “Start up banks or financial institutions and get financial assistance from anywhere.” World-wide venture capital companies provide their money. So, in the interest of the development of start-up or innovative products in Bangladesh, venture capital needs to be developed. The alternative investment fund will fund three types of projects, such as venture capital, i.e. less than two years old entrepreneurs, private equity, entrepreneurs of more than two years of age, and finally the impact fund, which will have an impact on socio-economic development rather than economic profit. Being tax-free, these funds will get more effective and more beneficial.

The other members of the Board of Directors including Mr. Shawkat Hossain, Managing Director of BD Venture limited and VCPEAB General Secretary, Mr. Shahidul Islam, Chief Executive Officer of VIPB and treasurer of VCPEABand Mr. Wali-ul-Maruf Matin, co-founder and managing director of Maslin Capital were present at the press conference.

Venture Capital is investing in various innovative enterprises including IT and ITES. Venture capital in various countries, including USA, Europe and India, helped funding the start-up companiesto get started. Bangladesh Securities and Exchange Commission (BSEC) has passed the Alternative Investment Rules in 2015. Under this rule, various venture capital and private equity companies have been established in Bangladesh. In addition to these, many foreign venture capital companies are working in Bangladesh. These venture capital and private equity companies formed ‘Venture Capital and Private Equity Association of Bangladesh’ (VCPEAB) in 2016 that works to protect the interests of this industry.VCPEAB members are, Fenox Venture Capital, BD Venture Limited, Bangladesh Venture Capital Limited, Lanka Bangla Asset Management Company Limited, Athena Venture and Equity Limited, Maslin Capital Limited, VIPB Asset Management Ltd.

Comments

comments

News Feed
Don't miss the stories followcorporatenews and let's be smart!
Loading...
0/5 - 0
You need login to vote.
Filed in
a2ie

NBR customer services will deliver through a2i’s Digital Center

code

Code Club Bangladesh launches ‘microbit’ projects for children

Related posts
Your comment?
Leave a Reply