E-COMMERCE IN BANGLADESH AND TAXATION

Executive Summary
The Internet has opened up a new horizon for trade and commerce, namely electronic
commerce (e-commerce). E-commerce entails the use of the Internet in the marketing,
identification, payment and delivery of goods and services. This paper highlights the
status, statutes, potential and constraints to e-commerce development in Bangladesh.
Both the statutory laws as well as the challenges in implementing them are discussed.
Major legal, regulatory and institutional constraints to e-commerce are identified. The
paper also lists specific policy changes aimed at bringing improvements to the legal and
regulatory environment affecting e-commerce.

E-commerce presents a major challenge for tax administrations, given the often multi-
jurisdictional nature of the transactions and the potential anonymity of the parties.

Introduction:
Now a days use of technology in each and every sector has been very common. In this
era of globalization we can hardly find any sector operating without using technology.
So there is no doubt and it is quite natural that business world will also use technology
effectively as well as efficiently and take the greatest advantage which is offered by
technology. Internet is one of the largest blessings of technology, which enables people
from the distant parts or county to interact or communicate easily. It has made the whole
globe a single village.

A new horizon has been opened up for trade and commerce, namely electronic
commerce (e-commerce) by none other than one and only internet. E-commerce entails
the use of the Internet In the marketing, identification, payment and delivery of goods
and services all are done by e-commerce using internet. This paper highlights the future
of e-commerce and constraints to e-commerce development in Bangladesh. Here the
challenges in implementing e-commerce in Bangladesh are discussed. Major legal,
regulatory and institutional constraints to e-commerce are needed to be identified to
make the implementation of E-commerce success. Specific policy changes aimed at
bringing improvements to the legal and regulatory environment affecting e-commerce is
another important issue. The advancement of technology is a continuous process. In
recent age it has given birth to a digital age. Now the buyers and sellers both have
much power because of the massive use of many powerful technology as well as
internet. Most of the business todays are operating under the e-commerce criteria over
digital networks. Internet connects the people with companies. It has provided easier
ways to serve its customer in a superior way and build stronger customer relationship
by creating value for customer. (Kilter, 2008:493)
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To discover the future of e-commerce in Bangladesh, we must have a clear idea about
what e-commerce is:

DEFINITION OF E-COMMERCE:
In a word e-commerce can be defined as performing business activity via internet or
another electronic network. Book defines Electronic commerce is an emerging concept
that describes the process of buying and selling or exchange of product, service, and
information via computer network including the internet.(Turban, 2004:04)From the
definition above we can say that performing any type of business activity through
internet is e-commerce.

Electronic commerce (e-commerce)

Systems that support electronically executed business transactions

The fundamental purpose of e-commerce is to execute transactions

Objective of the study

E-commerce has been shaking and shaping the business environment and breaking out
New ways of doing business. Thus it has become imperative to analyze the
environmental elements, which will actively govern the implementation of e-commerce
in Bangladesh. Thus the objectives of the study are to:
analyze the present environmental forces to judge whether e-commerce could
successfully be implemented in B-Bangladesh., and
suggest any improvement as required.

Taxation of e-commerce
1. Electronic commerce has the potential to be one of the great economic developments
of the 21st Century. The information and communication technologies which underlie
this new way of doing business open up opportunities to improve global quality of life
and economic well being. Electronic commerce has the potential to spur growth and
employment in industrialized, emerging and developing countries.

2. Revenue authorities have a role to play in realizing this potential. Governments must
provide a fiscal climate within which electronic commerce can flourish, weighed against
the obligation to operate a fair and predictable taxation system that provides the
revenue required to meet the legitimate expectations of citizens for publicly provided
services. Striking the right balance between these objectives is the aim of this Report.
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3. The Committee on Fiscal Affairs (CFA) recognizes that the technologies which
underlie electronic commerce offer Revenue authorities significant new opportunities to
improve taxpayer service and Member countries are committed to exploiting fully these
opportunities (see Section III).
4. The taxation principles which guide governments in relation to conventional
commerce should also guide them in relation to electronic commerce. The CFA believes
that at this stage of development in the technological and commercial environment,
existing taxation rules can implement these principles.
5. This approach does not preclude new administrative or legislative measures, or
changes to existing measures, relating to electronic commerce, provided that those
measures are intended to assist in the application of the existing taxation principles, and
are not intended to impose a discriminatory tax treatment of electronic commerce
Transactions.
6. Any arrangements for the application of these principles to electronic commerce
adopted domestically and any adaptation of existing international taxation principles
should be structured to maintain the fiscal sovereignty of countries, to achieve a fair
sharing of the tax base from electronic commerce between countries and to avoid
double taxation and unintentional non taxation (see Section IV). Revenue authorities
acting within the OECD or other fore must take an active role in encouraging protocols
and standards for electronic commerce which are compatible with
These principles.
7. The CFA has been able to reach conclusions on conditions for a taxation framework
needed to implement these principles (see Section V). Intensified co-operation and
consultation with business will be an important part of the process of implementing
these principles (see Section VI).

8. Revenue authorities recognize that electronic commerce technologies will open up

new ways by which they can undertake their business of administering tax law and
collecting tax revenues and new ways by which they interact with the wider community.

What are some of the unique features of e-commerce

technology?
Ecommerce words describe its own explanation for all internet based business.
Ecommerce Technology has expanded their branches in all market segments. Day by
day we look some new technology and ecommerce application for our business.
Ecommerce is not new technology. It has been running from 10 years back. From back
to current ecommerce technology has changed the lots for business profiles and vital
product, pricing and retailer client details on more than 1,200 application developers
and service providers in 23 different e-commerce market segments. These changes
make it better. The time is for gaining and achieving the some more features to stay
away for long time in the ecommerce market. In the ecommerce technology
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development hundreds of ecommerce solutions and vendors are running and

continually developing the best features to make it useful and perfect for their client. The
most important thing is how do you find the right one for your business? what do they
have the quality? Basically it is important to know much that unique features of
ecommerce Technology have included. The unique features of e-commerce technology
include:

Ubiquity: It is available just about everywhere and at all times. Consumer can
connect it to the Internet at any time, including at their homes, their offices, on their
video game systems with an Internet connection and mobile phone devices.
Ecommerce is ubiquitous technology which is available everywhere and can access all
times by using internet and Wi-Fi hotspot such as airport, coffee cafe and hill station
places.

Global reach: The potential market size is roughly equal to the size of the online
population of the world. Ecommerce Technology seamlessly stretches across traditional
cultural and national boundaries and enables worldwide access to the client.
Ecommerce website has ability to translate the multilingual websites as well as allow the
access to international visitors all over the world. Universal standards: The technical
standards of the Internet and therefore of conducting ecommerce, are shared by all of
the nations in the world. The whole online tradition are growing and expanding their own
features in the world. To development the any kind of business need Internet and
communication application which make the business relationship more lovingly and
attractive for secure business and successful business. Ecommerce Technology
provides us powerful application to access our social networking and online ecommerce
store any time and everywhere.

Richness: Information that is complex and content-rich can be delivered without

sacrificing reach. It has been so simple to keep the record of our tradition
commendation within the ecommerce time. You can save your audio, video, sent files,
received files or data in your user account.

Interactivity: E-commerce technologies allow two-way communication between the

merchant and the consumer. You can call them by using the VoIP and track the
communication record. And second is email communication which allows you to access
all kind of mailing systems and tracking.

Information density: The total amount and quality of information available to all
market participants is vastly increased and is cheaper to deliver. Most business owners
use the shopping cart and do the order of product and purchasing online. Online
shopping process allows a consumer or company to receive personal details, product
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shipping, billing and payment information from a customer all at once and sends the
customer's information to the appropriate departments in a matter of seconds priority.

Personalization/Customization: E-commerce technologies enable merchants to

target their marketing messages to a persons name, interests and past purchases.
They allow a merchant to change the product or service to suit the purchasing behavior
and preferences of a consumer.

Social technology: User content generation and social networking technologies is

most useful features which accelerate the client activity to share the information and
content with one click. Ecommerce technology has tie up the social media networking
application to provide the best source of content sharing technology and marketing
systems. You can share you content or data easily in just one

E-Commerce in Bangladesh perspective

In Bangladesh, E-Commerce is just evolving, but the ball has been set rolling for an
Internet revolution. E-commerce is no longer a luxury but a reality. Now, it is estimated
that more than 180 ISPs have been working in this country and there are near about
4.5 lakhs1 Internet users in the country. So, there is a vast chance for the expansion of
ecommerce in Bangladesh. The usage of computer in Bangladesh is very low. Beside
this, the speed of the Internet is very slow as the necessary advancement of
telecommunication infrastructure is not in place. Bangladesh is recently connected to
the rest of the world over a fiber-optic backbone. Before that ISPs in Bangladesh are
providing Internet services via VSATs from Singapore. In Bangladesh, some
companies/vendors have already started their business through E-Commerce, and they
achieved some success. One of the pioneers in this regard is www.munshiji.com. Now
days, there are several e-commerce sites in Bangladesh like
www.BanglaCommerce.com: An e-commerce site with lots of product.
www.e-bangla.com: A one-stop Bangladeshi shopping mall on the net.
www.ecommercebank.org: First e-commerce bank in Bangladesh.
www.bdbazar.bigstep.com: Premier Bangladeshi shopping site for Bangladeshis who
are living abroad.
www.littlebangla.com: An e-commerce site for every types of business develops by
FedEx and Aarong.
www.bengalcommerce.com: An e-commerce site for sending gifts/flowers/cards etc
To loved and dead ones.
www.sonalibangla.com: It provides with most affordable Internet presence for
Bangladeshi Business on the Web and helping to create Business Home Page,
Publishing press release, advertising items and buy/sell.
www.emrex.com: offers Internet and e-commerce solutions and sells handicrafts,
Books and clothing.
www.bajna.com: A site for music and books shopping.
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www.bdjobs.com: An employment site. Various products/items can be purchased

through these e-commerce sites with electronic goods, computer accessories,
software's, music (cassettes or CD's), VCD, gift items, food items, wears, jobs hotel
reservations etc. A customer within the country can choose and order the product, but
payment procedures are quite different than International payment procedures. There is
no electronic payment system in Bangladesh but domestic customer can pay with the
following various payment options:
# International Credit Card: VISA, MASTER or Others.
# Payment on Delivery: Payment can be made after delivery the product to the
customer.
# Payment through Bank: A domestic customer can pay by cheque, Postal Order
(P.O.), Demand Draft (D.D), Telephone Transfer (T.T.), or Credit Advice. The BECS
(Bangladesh Ecommerce Samity) formed on the 20th November, 2000, has vigorous
campaign of e-commerce and tries to introduce it in every door in Bangladesh and
make Dhaka a dot com city within five years. According to a telephonic interview
(February 2001) from ISPs (Internet Service Providers) in Chittagong, there are
approximately 5500 Internet users in Chittagong Metropolitan City (CMC) out of its total
population of roughly 35,00,000. More concretely, there are 1.57 Internet users per
1000 people in CMC. It is not a remarkable figure but the number of Internet users is
increasing. Internet service has already been started working in Rajshahi Metropolitan
City (RMC) and other district towns of Bangladesh. Today the approximate number of
Internet users in Bangladesh is more than two lakh. Considerable awareness for e-
commerce can be observed in Bangladesh and few companies are trying to apply e-
commerce for conducting business. Three important requirements for e-commerce are
adequate information infrastructure, appropriate legal framework and skilled manpower.
Unfortunately the first and third of these are not sufficient and the second one does not
exist in the country. But currently the government controls almost the whole
telecommunication sector. Already the government is trying to prepare the
communication technology policy. The first draft of a sort of communication technology
policy was prepared and presented in July 2000. The Bangladesh Computer Council
prepared the draft under the auspices of the Ministry of Science and Technology. It
details clear policy instructions regarding infrastructure, the development of technology,
creating an environment for e-commerce and e-governance. The Government of
Bangladesh has taken steps to boost up the IT industry for the development of e-
commerce. The steps are as follows:
1. Waiving all taxes and duties from importing the hardware and software;
2. Ending BTTB's role for the use of VSATs by ISPs who now directly negotiate with
foreign carriers;
3. Declaring Tax Holiday for software and IT industry;
4. Tax free export of software with 40% foreign; 100% remittance of profit and capital
gains without any approval for the foreign investors;
5. Special funds have been allocated for collateral-free loan;
6. Intellectual Property Rights Law has been approved by the Parliament.
7. They are producing Services Usage. Charge and that is below Tk. 1.00 per minute.
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E-business and tax

Where there is business, there will be taxes, whether the business is online or off. If you
are taking an existing business online, you're probably familiar with most of this advice.
If not, this is vital information when you're starting out.

Income tax
Income tax is payable on your income from employment or self-employment. HM
Revenue & Customs (HMRC) sets a tax-free allowance for you - you pay tax on the
rest. The amount of income tax you pay on your business income depends on the
amount you earn and the type of business:

Don't pay too much tax!

There are a number of tax reliefs than can reduce the amount of income tax you pay;
find out which you are eligible for and apply for them via the HM Revenue and Customs
Website.

Sole trader: you pay income tax on your business' profits rather than on the
salary you pay yourself. You're responsible for paying your own income tax (and
National Insurance - see below for more information) by filling in a tax return
every year. Once you are registered as a sole trader, HMRC will automatically
send you a tax return form that suits your particular circumstances.

Limited company: as an employee you pay income tax on your salary, normally
deducted automatically from your wage via the Pay as You Earn (PAYE) scheme.
But as a director of a limited company, you'll also need to fill in an annual tax
return. Business Link advice will help you with this. (A limited company also pays
corporation tax on its profits - see below.)

Corporation tax
Corporation tax is not payable by sole traders and partnerships but is payable on the
profits of limited companies. You pay corporation tax, in the country you live in, on your
worldwide online trading profits. Anything you make money from can be taxed once you
are making at least a few thousand pounds a year.

You are legally obliged to let HMRC know your company exists and that it is liable for
corporation tax. You can do this on the HM Revenue & Customs website.
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You don't want to pay more corporation tax than you need to - keep accurate
records of your income and expenditure.

Charging VAT
VAT applies to most business transactions that involve the sale of goods or services.
Once your turnover passes a certain level you'll need to register (with HMRC) for VAT.
Then you'll have to charge VAT on your sales and repay the VAT to HMRC. The amount
of VAT you charge on your sales depends on what you are selling and who you are
selling it to. It's not that simple, but - fortunately - the HMRC website includes a
comprehensive guide to VAT rates.

VAT is considerably more complex on purchases that are made outside the UK,
depending on whether you are supplying goods or services to business or non-business
customers, inside or outside the EU. If your business has not previously been involved
in cross-border trading, speak to an accountant or tax adviser before you start.

VAT and e-commerce

Where goods or services are supplied by a UK business to a customer whether the
business is obliged to account for VAT in the UK, elsewhere, or at all, will depend upon
whether the supply is of goods or services, where the supply is treated as made and
whether the customer is in an EU member state. The implications of e-commerce for
VAT purposes can be examined in the context of three types of transaction:

Supplies of physical goods to business or private consumers;

Supplies of intangible goods or services to business;

Supplies of intangible goods or services to private consumers.

It should be noted that significant changes to the VAT treatment of cross border supplies
of services came into effect from 1 January 2010. However these changes did not
change the place of supply of electronically supplied services.

Supply of physical goods to business or private consumers

The basic position is that in general supplies of physical goods are deemed to be made
in the place where the goods are located when they are dispatched. Where the goods
are merely ordered using electronic communications, this will not affect the way in which
they are treated for VAT purposes. The location of goods and therefore their place of
supply for VAT purposes will not be altered by internet ordering.
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As VAT legislation was originally drafted in the context of goods physically being
supplied, there is generally little difficulty in applying the existing regime to this type of
transaction. Note however that digitized products are treated as a supply of services
and not goods.

The VAT treatment of a supply of goods to a customer within the EU will depend upon
whether the customer is a VAT registered business or not. If goods are sent from the UK
to a VAT registered business in another member state they can be zero-rated by the UK
supplier provided certain conditions are complied with, which include obtaining the
customer's VAT registration number.

Where a UK business supplies goods to private consumers in another member state,

the sales will be subject to UK VAT unless the business' level of sales to private
customers in that member state has exceeded the distance selling threshold for that
state. If it has exceeded the threshold the UK business will be required to register for
VAT in that member state and account for VAT on the sales there. The UK business may
voluntarily register for VAT in the other state and account for VAT there even if it has not
exceeded the threshold. This may be desirable in member states with a lower rate of
VAT than the UK.

Supplying goods over the internet to customers in a variety of EU member states can
therefore impose significant burdens on a business in terms of monitoring levels of
supply in each State and complying with the differing requirements in each state.
Another potential area of difficulty in internet sales is identifying and verifying the
customer's status.

Supply of electronic services to business customers

Supplies of digitized products are treated as supplies of services rather than goods.
Since 1 January 2010, the basic rule for supplies of services where the customer is
registered for VAT is that services are deemed to be supplied where the customer
belongs. Individuals receiving supplies in a personal capacity are treated as belonging
where they have their usual place of residence and businesses are treated as belonging
where they have a business or fixed establishment which has the benefit of the service.

If the supplier and the customer belong in the same EU member state, the supplier
accounts for the VAT. If they belong in different EU member states, a reverse charge
procedure operates. This means that a UK supplier does not have to account for VAT
when making supplies to a customer belonging outside the UK, regardless of whether
the customer belongs in the EU or not. However an EU based customer must account
for VAT in its member state it is treated under the reverse charge procedure as having
supplied the service to itself and so it must account for output tax and can recover input
tax depending upon the extent to which it is making taxable supplies.

The reverse charge provisions also apply in relation to services supplied by a supplier
outside the EU so an EU business customer may have to account for VAT under the
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reverse charge procedure in its member state in respect of services it receives from
suppliers belonging outside the EU. For most business-to-business transactions this
regime ensures a level playing field within the EU between EU and non-EU suppliers.

In the case of electronically supplied services supplied to business customers the basic
rule on the place of supply of services may be overridden by the use and enjoyment
provisions. These provide that:

if the supply would be treated by the basic rule as supplied in the UK (because
the customer belongs in the UK), but the services are to any extent effectively
used and enjoyed in a country outside the EU, the supply is to be treated to that
extent as made in that country (so that no VAT is payable); and

If the supply would be treated as made in a country outside the EU (because the
customer belongs outside the EU), but the services are to any extend effectively
used and enjoyed in the UK, the supply is to be treated to that extent as made in
the UK (so that UK VAT is payable).

Further guidance on these rules can be found on the HMRC website. Electronically
supplied services include the following:

website supply, web hosting and distance maintenance of programmers and

equipment;
the supply of software and the updating of software;

the supply of images, text and information, and the making available of
databases;

the supply of music, films and games (including games of chance and gambling
games);

the supply of political, cultural, artistic, sporting, scientific, educational or

entertainment broadcasts (including broadcasts of events);

the supply of distance teaching;

online auction services; and

Internet service packages.

For further guidance on what is covered, see the HMRC website.

Supply of electronic services to private customers

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The general rule is that supplies of services to private customers are treated as made
where the supplier belongs. However, electronically supplied services supplied to
private customers who belong in the EU by a supplier who belongs outside the EU will
be treated as being made where the customer belongs.

Supplies to UK recipients will therefore be subject to UK VAT if the supplier belongs in

the UK or belongs outside the EU. If the supplier belongs in another EU member state,
VAT will need to be accounted for by the supplier in that other Member State. No VAT
need be accounted for on supplies to customers belonging outside the EU. Note that
the use and enjoyment rules mentioned above in relation to business customers do not
apply to supplies to private customers.

As mentioned above, where the supplier belongs outside the EU but the recipient is a
private customer within the EU, the supplying business will need to account for VAT.
Non-EU businesses supplying electronic services can register electronically in the
member state of their choice, rather than having to register each state in which supplies
are received. They will account for VAT at the rate applicable in the customers member
state on an electronic return and VAT will be distributed as appropriate to the relevant
member state where the supply is consumed.

From 1 January 2015 the rules will change so the place of supply will be the place
where the customer is based. The system mentioned above in relation to non-EU
suppliers will be expanded to enable UK suppliers to account for VAT in the UK in
respect of supplies to private customers in other member states.

Online payments: what do I need?

To accept payments online, your website has to be connected to a Payment Gateway,
which encrypts and sends your shoppers' payments for authorization. In turn, the
Payment Gateway is connected to a Merchant Account - a bank account specifically for
processing credit and debit card orders.

World Pay can offer a Merchant Account combined with payment processing in a
complete package. Have a look at Business Gateway Plus for more information. This
section takes you through everything you'll need to do to enable your website for online
payment as well as apply for, and connect to, World Pays service:
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Merchant Account for online funds

Payment processing

Applying to World Pay

Connecting to World Pay

Credit card fraud

Online fraud is a growing menace to e-businesses and their customers as fraudsters

target online payments using stolen card details.

The crucial thing to know before you start selling is that you will be responsible for
any fraudulent transactions made at your store. Its up to you to ensure that your
customers are genuine. If you don't, you are liable for reimbursing cardholders whose
cards were used without their authorization.

The good news? World Pays dedicated fraud-fighting tools will help you reduce your
losses due to fraud.

But you need to take your own fraud prevention measures as well: many new online
companies go out of business within six months because they fail to do so.

You'll also need to make sure any card payment information you store is protected
against hackers and fraudsters who might attempt to steal credit card information. This
is in order to comply with requirements introduced by the Card Schemes (called
Payment Card Industry Data Security Standard or PCI DSS) to protect cardholder data.
Large fines can be imposed for non-compliance or data breaches so it's vital you
understand your obligations before you start accept
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Making E-Payments
Paying Income Tax

Four types of users can pay Income Tax by using this portal (e.g. Self, Authorized
Representatives, Deducting Authorities & Others). If you want to pay income tax
as a Self user, click the e-Payment link, go to Income Tax and click Pay Income
Tax Online. Your TIN & Name will appear automatically from profile section.
Select taxes zone, taxes circle, tax type and tax section. Account code will
appear automatically.

Enter the assessment year applicable to your e-payment. (For example, for any
Income period between July 2011 and June 2012 the assessment year will be
2012-13.)

Enter the amount (in BDT) you want to pay and other personal details. Recheck
all entered information, click Submit to save your information and proceed to the
Somali Bank page. Once you are there, you cannot come back to this page, but
you can start afresh if you want.

Select your mode of payment (e.g. debit card) from the dropdown menu and click
Next to see a draft copy of the e-Challan. If information contained in draft challan
is accurate, click Next to continue.

In the Q-Cash page, enter your card information (PAN, CVV2 / CVC2) in the form
by clicking on the numbers on the keypad.

Enter your name and expiry date as it appears in your account or card. Make
sure its spelled correctly. Do this quickly since your session will expire quickly if
left inactive. If everything is correct, click OK.

Enter your credit/debit card password or online banking code by clicking on the
numbers on the keypad and click Submit to view final Challan. You are
encouraged to contact your bank to obtain your internet PIN or iPIN.

Print, save or email this final e-challan as you like. Click Finish to end your
session. You can now return to your profile and view payment details.

Do not forget to sign out once you are done transacting.

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Instructions for paying Income Tax as Authorized Representatives, Deducting

Authorities, and Others are provided in greater detail in the Learn section on
the E-payment website.

Paying VAT

In the e-Payment link, go to VAT and click Pay VAT Online. Your TIN, Name and
Business Name will appear automatically from profile section. Enter your BIN,
and revenue type. If your payment type is not on the list, select Other VAT. Select
the VAT Office where you want to pay your VAT.

Now enter your personal information in the fields for your name, address and
amount you want to pay. Click Submit to save your information and proceed to
the Sonali Bank page. Once you are there, you cannot come back to this page,
but you can start afresh if you want.

Select your mode of payment (e.g. debit card) from the dropdown menu and click
Next to see a draft copy of the e-Challan. If information contained in draft
challan is accurate, click Next

In the Q-Cash page, enter your card information (PAN, CVV2 / CVC2) in the form
by clicking on the numbers on the keypad.

Enter your name and expiry date as it appears in your account or card. Make
sure its spelled correctly. Do this quickly since your session will expire quickly if
left inactive. If everythings ok, click OK.

Enter your credit/debit card password or online banking code by clicking on the
numbers on the keypad and click Submit to view final Challan. You are
encouraged to contact your bank to obtain your internet PIN or iPIN.

Print, save or email this e-challan as you like. Click Finish to end your session.
You can now return to your profile and view payment details.

Do not forget to sign out once you are done transacting.

Paying Customs Duty

In the e-Payment link, go to Customs Duty and click Pay Customs Duty Online.
Your Agent Identification Number (AIN) and agency name will appear
automatically from your account.
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Fill in your information in the form including where you want to pay (Dhaka,
Benapol, Mongla etc), Bill of Entry number, and date of registration. Click Search
to view tax details of the transaction in question and generate the amount of
customs duty to be paid.

Click Submit to save your information and proceed to the Sonali Bank page.
Once you are there, you cannot come back to this page, but you can start afresh
if you want.

Select your mode of payment (e.g. debit card) from the dropdown menu and click
Next to see a draft copy of the e-Challan. If information contained in draft
challan is accurate, click Next

In the Q-cash page, enter your card information (PAN, CVV2 / CVC2) in the form
by clicking on the numbers on the keypad.

Enter your name and expiry date as it appears in your account or card. Make
sure its spelled correctly. Do this quickly since your session will expire quickly if
left inactive. If everythings ok, click OK.

Enter your credit/debit card password or online banking code by clicking on the
numbers on the keypad and click Submit to view final Challan. You are
encouraged to contact your bank to obtain your internet PIN or iPIN.

Print, save or email this e-challan as you like. Click Finish to end your session.
You can now return to your profile and view payment details.

Do not forget to sign out once you are done transacting.

OtherServices

Users can also pay other taxes (e.g. travel tax, gift tax) through the portal. Easy step-by-
step guidelines are provided in the Learn section of the portal. Users can also verify
their e-challan through this portal. Visit the How to Use link on the site to learn more.

Constraints to E-Commerce in Bangladesh

Out of 64 districts, Internet services are available only in 6 major district headquarters.
BTTB is planning to gradually roll out an IP network up to the 64 district headquarters.
In January 2002, the Internet facilities were extended to 12 districts. The project is
running on very fast and today almost 40 plus districts are getting Internet facilities.
Followings are the barriers of e-commerce in Bangladesh:
Very minimum number of users of web sites;
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Poor telecommunication infrastructure with limited fixed-line access, unreliable

connectivity and low bandwidth (9K);
High price of computer and hardware: The per capita income of our people is less than
US$520. But in order to buy a computer it is needed US$500 and for this reason, it is
beyond the capacity for a villagers to buy it.
Lack of technically efficient personnel;
Lack of investment in hardware and software;
The banking infrastructure in terms of electronic payments and inter-bank connectivity
is poor. As such, the customers of 5770 branches of the local banks are unable to
operate their account with the other branches of the same bank. Inter bank transaction
is more cumbersome as the clearing-house of the central bank is not online. An inter-
bank transaction may take even 2 weeks if the branches are different cities. Only 27
branches of the eight foreign banks are interconnected with their respective head
offices. They are also satisfactorily computerized. This represents only 0.47% of the
entire banking sector.
Small number of Credit Card users;
Limitations of supportive legal system. Such as, exchange controls, protection of
telecommunication monopolies, restrictive trade practice and prohibitions;
Absence of cyber law;
People's mindset and very slow and expensive Internet services;
Enterprise managers' lack of initiative and leadership in taking advantage of
ecommerce;
Bureaucratic complexities; and
Lack of awareness at government level of e-commerce issues.
Due to these problems, not sufficient on-line users are available until the club of Internet
Users in the country reaches a critical mass, cyber banking and thus e-commerce is
unlikely to take off among customers. E-commerce, as a vehicle to boost up trade,
especially international trade, has already been recognized by international business
community, especially in European Union, North American Markets and some of the
other developed nations like Japan, Singapore, Hong Kong (now a part of China) etc.
However e-commerce and its related technologies are still in its infancy stage in
Bangladesh. Despite existence of a lot of barriers in the development of ecommerce
environment in Bangladesh, non-involvement in e-commerce is an option. Since the
world is moving towards e-everything, so we should try to overcome all the barriers and
also try to develop such environment that is favorable for the development of e-
commerce.

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Recommendations and conclusions

Recommendations
The assessment of the e-commerce environmental forces of Bangladesh leave us some
Room to recommend some steps and measures that should be undertaken by the
policy
Makers and business stake holders for the full fledged implementation and development
Of e-commerce in Bangladesh. The recommendations are:
There should be an EFT (Electronic Fund Transfer) Gateway, which will connect all
finance and banking institutions, ATMs, POS and related websites. Such Gateway will
speed up the transactions among banks, commercial institutions. This sort of
infrastructure needs to be implemented on priority basis.
A CCG (Credit Card Gateway) should be established. A credit card gateway is a
server that makes online credit card transactions safe (Skinner, 2005). The software
protocols in the CCG use the information provided to check for availability of funds and
to make sure the credit card is not expired, lost or stolen. This takes only seconds.
When the transaction is approved a receipt is generated for the customer, and the funds
are transferred to the vendor's bank account through EFT.
Unlicensed radio frequencies should be made available on demand and VSAT
operating licenses should not limit the bandwidth.
to improve banking mechanism, Bangladesh government should compel the banking
sectors to automate their operation and going online by a specific period. 82 The
Environment of E-Commerce in Bangladesh The control of foreign exchange should be
liberalized gradually, and easier issuance of International Credit Cards should be
allowed, banks should take effective steps here.
Business associations and organizations should be made aware of the benefits of e-
commerce. Business organizations like FBCCI, DCCI, MCCI, and BGMEA can play a
significant role in promoting e-commerce in Bangladesh.
Political commitment to improve governance and institutional strength is essential for
successful application of e-commerce.
Last but not least, National ICT policy, 2002 and enactment of the ICT Act, 2005
Is required to enhance the implementation of e-commerce.
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Conclusion
E-Commerce is the system of buying and selling of goods and services over electronic
Medium. Only the internet connection is not enough for the development of e
commerce. The whole environment is essential for the development, maintenance and
growth of ecommerce. The analysis of the environmental forces reveals that the
prevailing situation is encouraging for the implementation of e-commerce in
Bangladesh. The macro and micro economic situation is favorable to e-commerce. The
synopsis of the legal and regulatory statutes indicates that Bangladesh has made
significant progress in facing the challenge of embracing e-commerce in due course of
time. ICT infrastructure such as Away connection, last mile connection, internet
connectivity and usage etc. already meet the criteria for establishing the e-commerce.
Bangladesh is rich in ICT human capital and continuously producing graduates to meet
the demand of the next century. Even Bangladesh doesnt require any foreign expert to
implement, execute and maintain ecommerce infrastructure. Despite the encouraging
state of implementation, e-commerce can never be deployed until and unless an
Electronic Fund Transfer (EFT) Gateway and a Credit Card Gateway (CCG) have been
established. These two Gateways will eliminate the security issues in ecommerce and
enhance the e-transactions. In addition to that, creating awareness among the citizens
and the business organizations is essential for the implementation and growth of e-
commerce in Bangladesh.