Finance Minister Amir Khasru Mahmud Chowdhury has proposed bringing all freelancers, content creators, and startup companies under a full VAT (Value Added Tax) exemption regime.
Under the proposal, income earned from all types of freelance work and content creation will be fully exempt from both income tax and VAT. At the same time, the finance minister announced a Tk 5 billion startup fund for the information technology sector and several long-term VAT exemptions for startups extending until 30 June, 2035.
The announcements were made during the minister’s budget speech for the 2026–27 fiscal year in the National Parliament on Thursday. Highlighting the potential of the information technology sector and the need to encourage new entrepreneurs, the finance minister said the Tk 5 billion startup fund would be used to foster women and young entrepreneurs and promote women’s development.
The minister noted that tax exemptions currently apply only to IT-related freelance earnings. Under the new budget, this benefit has been expanded to cover income from all forms of freelance work. As a result, freelancers will be encouraged to bring their earnings into the country through formal banking channels.
In addition, the finance minister announced that young people earning income from content creation on platforms such as YouTube, Facebook, and other digital platforms will not have to pay any income tax on those earnings.
In this regard, Amir Khasru Mahmud Chowdhury said, “I propose that income earned from all forms of content creation be exempt from tax. In addition, I propose reducing the turnover tax for startups, innovative ventures, and technology-based businesses to zero per cent.”
Industry stakeholders noted that startups are often required to pay turnover tax even during their early stages when revenues remain low. To address this challenge, the government has proposed reducing the turnover tax for startups and technology-driven businesses to zero per cent in a single step.
Alongside income tax relief, the finance minister has also proposed granting full VAT exemptions to freelancers, content creators, and startup companies. He said that in order to expand opportunities and encourage young freelancers and content creators, the existing 15 per cent VAT imposed on their services will be completely waived.
To further stimulate the startup sector, the finance minister proposed several long-term VAT exemptions that will remain in force until 30 June, 2035.
He said the existing 15 per cent VAT on services provided locally by startup companies will be fully exempted. The 15 per cent VAT currently imposed on imported services used by startups will also be completely waived. In addition, the 15 per cent VAT applicable to the rental of office space and facilities for startup operations will be fully exempted.