The government is likely to reduce the value-added tax (VAT) for the backward linkage of internet service providers to 5.0 per cent with a view to lowering the internet price for the end users.
“This decision has been finalised by the Finance Ministry recently and will come into effect from December 1 next,” Posts, Telecommunications and IT Minister Mustafa Jabbar told UNB on Thursday.
This step will benefit more than 90 million internet users as all the internet service-providing channels will be paying 5.0 per cent VAT down from the existing 15 per cent, he added.
“This will reduce the cost for internet users,” said the minister, reports UNB.
When contacted, President of Internet Service Providers Association of Bangladesh (ISPAB) MA Hakim told UNB over phone, “We heard that the decision was taken at a finance ministry meeting on Sunday, but no letter was yet to receive.”