The Venture Capital & Private Equity Association of Bangladesh (VCPEAB) has expressed appreciation to the interim government and Finance Adviser for their efforts in creating a favorable business environment.

In particular, VCPEAB welcomed the government's allocation of Tk 125 crore in the upcoming fiscal year to empower women entrepreneurs, a move aimed at strengthening inclusive growth within the entrepreneurial ecosystem.

However, the organization voiced concerns over the recent increase in VAT on e-commerce commissions from 5% to 15%.

VCPEAB warned that this hike could elevate operational costs for e-commerce platforms, potentially leading to higher prices for consumers and undermining the competitiveness of small and medium-sized enterprises (SMEs) in the sector.

In response to the budget proposals, VCPEAB called on the government to recognize investments in venture capital funds as eligible for tax rebates.

The association also urged that such investments be granted tax credits similar to those available for stock market investments, to bolster start-ups and SMEs.

Furthermore, VCPEAB recommended that investments in Alternative Investment Funds (AIFs) be acknowledged under Section 44, Part B of the Sixth Schedule of the Income Tax Ordinance 1984, to foster a vibrant, innovation-driven economy.

Commenting on these developments, VCPEAB President Mr. Shawkat Hossain stated, “We appreciate the government's support for women entrepreneurs and urge the government to treat investment in venture capital funds as an allowable investment for tax rebate.”

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