Govt plans to bring online gaming under tax net

The government is planning to bring online gaming under the tax net to boost revenue and formalise the digital economy, NBR officials have said.

Bangladesh's online gaming market has already exceeded Tk 2,000 crore, but most transactions remain untaxed.

The NBR is considering imposing VAT and supplementary duties on in-app purchases, subscriptions and virtual currencies. At least 15 per cent VAT could generate Tk 200-250 crore annually, officials estimate.

A proposal has been presented to Finance Minister Amir Khasru Mahmud Chowdhury, who has expressed support.

However, economists warn that a clear legal framework is needed first. Zahid Hussain, former World Bank lead economist, said the government must define which games are skill-based and which fall under gambling. Policy Exchange CEO M Masrur Reaz said several hundred crore taka could be generated annually with proper policies and infrastructure.

India, Pakistan and Indonesia have already imposed similar taxes on online gaming and digital services.