Cybersecurity products to become cheaper

Cybersecurity equipment will see a 10 percentage point cutback in import duty in fiscal 2016-17 -- a development most definitely instigated by the recent incidents of cyber attacks on the country's financial system.

The network security system, firewall, will now be subjected to 15 percent duty, down from current 25 percent.

“A 10 percentage point import duty reduction is huge,” said Suman Ahmed Sabir, chief strategy officer of international internet gateway Fibre@Home.

The move will facilitate in ensuring security in all digital infrastructures, he added.

“The finance minister had no other option but to reduce the duty to secure his own sector,” said Mustafa Jabbar, a former president of the Bangladesh Computer Samity.

He, however, said the government should have gone one step ahead and withdrawn the duty entirely for the sake of enhancing security of all digital infrastructures in Bangladesh.

“The move would have secured more money than what the government would earn from the 15 percent duty,” Jabbar added.

Biometric fingerprint scanners, another essential security equipment, would see their import duty rise to 5 percent from existing 2 percent in the forthcoming fiscal year.

“This is a contradictory move. Both the equipment are vital for the purpose of security,” Sabir said.

Muhith also proposed reducing the import duty on WiFi and Wimax local area network card and access points to 15 from 25 percent.

Both Jabbar and Sabir appreciated the move, as it will help expedite internet growth in the country.

Besides, the information and communications technology sector will continue to enjoy the tax exemption status in the coming year.

Duty reduction on some of the inputs used for manufacturing SIM cards, scratch cards, credit cards and other smart cards has been proposed as well.

The import duty on PVC sheet will be cut from 25 percent to 15 for the SIM card or smart card manufacturers.

“We appreciate the decision and we hope it will help in establishing a smart tech-related industry in the country,” said Jabbar, who is also a member of the digital Taskforce led by Prime Minister Sheikh Hasina.

The import duty on optical fibre cables will be increased to 15 percent from existing 10 percent to lend a helping hand to the local manufacturers.