The Internal Resources Department of the Finance Ministry has finally announced an increase in VAT on ISPAB, an organization of Internet service providers in the country, after demanding a reduction in VAT and threats to shut down internet services at a later date.
Abu Hena, senior secretary of the Department of Internal Resources. An order signed by Rahmatul Munim called for lowering the existing 15 per cent VAT rate on Internet Terrestrial Cable (ITC), International Internet Gateway (IIG) and Nationalwide Telecommunication Transmission Network (NTTN) services to 5 per cent. The company issued an order in this regard on August 25. As a result, broadband internet service providers in the country will have to pay less to the government for VAT. However, this will not reduce the cost of the customer, said the leaders of the Internet service providers. When the VAT rate on internet services at the consumer level was reduced from 15 per cent to 5 per cent two years ago, the cost of broadband internet subscribers has not come down with one or two exceptions. But at that time it was said that reducing the VAT rate will reduce the cost of the customer. According to the concerned, the opportunity to reduce the VAT rate on these services does not go in the pocket of the customer. But at that time lobbying was done to reduce the VAT rate by showing the customer.
Emdadul Haque, general secretary of the Internet Service Providers Association of Bangladesh (ISPAB), told Ittefaq that earlier there was an opportunity to get a discount by paying 15 per cent VAT. But after lowering the VAT rate to 5 percent at the consumer level, our expenses have gone up as the opportunity to get a discount has been closed. In all, 15 percent at two levels and 5 percent at one level will result in a total VAT of 35 percent. But 15 percent is to be given. As a result of this new decision, our expenses will be reduced now. However, there will be opportunities to get better quality services than before.