7.5% tax on freelancing and content creation: Taxation is a threat to the industry, which is an alternative to exports and earns foreign exchange.

BNP government imposes tax burden on one of the main sources of foreign exchange earnings

Special Correspondent

The current BNP government has suddenly decided to cut taxes on the freelancing and content creation sectors in Bangladesh by 7.5 percent. Thousands of freelancers and content creators are expressing their anger and disappointment on social media after the news that the tax cut will start from June income. Experts see the decision, just three months after taking power, as a step to hinder the development of an emerging and promising sector for earning foreign currency.

 

More than $500 million comes from freelancing annually

Bangladesh is recognized as the second largest freelancing country in the world, with over 650,000 active freelancers earning over US$500 million in foreign exchange annually. According to the Bangladesh Association of Software and Information Services (BASIS), Bangladesh is one of the top five freelancing countries in the world.

The role that freelancers play in generating remittances has already been a topic of discussion at home and abroad. The Financial Express reported that more than 60,000 freelancers are earning $500 million annually. This number is increasing every year as the digital economy develops.

 

Hasina government policy: Tax exemption was encouraged

The previous Awami League government had given special patronage to the freelancing profession to reduce pressure on the garment industry and create an alternative way to earn foreign exchange. Although the budget repeatedly proposed imposing a 10 percent tax on this sector, the freelancing profession was kept tax-free due to the strong stance of the Sheikh Hasina government.

Even from July 1, 2024 to June 30, 2027, several technology-based business activities, including software development, artificial intelligence solutions, data analytics, IT freelancing, and certain BPO-related services, were eligible for tax exemption under the Income Tax Act.

Sheikh Hasina’s call was, “Don’t get a job, become a freelancer.”

In this tax-free environment, freelancing and content creation quickly gained popularity as an attractive career for the new generation. Millions of young people were joining this profession, earning their livelihood on the one hand, and on the other, contributing significantly to the country’s foreign exchange reserves.

Prime Minister Sheikh Hasina’s speech in 2022 to encourage the freelancing sector

 

Taxes after three months: Freelancers fuming with anger

Within just three months of taking power, the BNP government has started imposing new taxes on various small sectors to fill the revenue gap. As part of this, it has been decided to deduct tax at source at a rate of 7.5 percent on the income of freelancers and content creators from June.

The decision has sparked a backlash on social media, with content creators and freelancers reporting receiving notices that a 7.5 percent deduction has been made from their June income. Many are questioning the legitimacy of suddenly imposing a tax on a profession that has been encouraged and nurtured for so long.

 

Experts worry: The damage will be long-term

Economists and industry experts say that a booming sector is being stifled in the long run in the hope of generating a small amount of revenue in the short term. According to Payoneer, the average Bangladeshi freelancer earned $500 to $700 a month in 2025. It is feared that deducting 7.5 percent tax from this limited income will discourage newcomers from entering the profession.

Analysts believe that while the Bangladeshi economy is looking for alternative sources of foreign exchange amid various pressures, including the risk of US tariffs on the garment sector, this tax on the freelancing sector is practically a step in the opposite direction.

 

Demand: Immediately withdraw the decision

Freelancers and content creators are trying to organize on various platforms and are demanding that the government withdraw this tax decision. Their point is clear — a freelancer who brings in foreign currency is contributing to the country just like an expatriate worker. Discouraging him means weakening the country’s remittance flow.

If the government is truly interested in building a digital economy, then the right policy would be to exempt the freelance sector from the burden of taxes and provide more investment and patronage, according to those involved.