VAT complexities: Internet service providers seek PM’s intervention

Internet Service Providers Association of Bangladesh (ISPAB) on Saturday sought the Prime Minister's intervention in resolving the complexities over 5% and 15% Value Added Tax (VAT) in the sector.

The internet service providing organisations made the appeal at a virtual press briefing.

"We demand solution to VAT complexities as well as the inclusion of ILDC, IIG and ISP industries under Information Technology Enabled Services (ITES) category," said ISPAB President Md Aminul Hakim.

Internet service providers at the virtual press briefing threatened of closing broadband connection for 2/3 hours if their demands are not met by this month.

Md Aminul Hakim said the bill collection has been reduced by 40 to 50 percent due to Covid-19 pandemic although their staff have been working amid health risk.

The imposition of 5% for ISPAB internet and 15% for ITC, IIG and NTTN sectors of the value chain has created complexities in this sector, said Hakim adding that "We want the Prime Minister's intervention in resolving the crisis of this sector."

If the VAT complexities are not resolved, the activities in this service sector might face interruption, he added.

He also said that if this problem is not resolved, the price of internet service might be increased by 30 to 40 percent at the grassroots level.

Earlier on April 5, the ISPAB sought Tk 610 crore government grant to keep the services uninterrupted and protect the sector from losses during the coronavirus outbreak.

ISPAB submitted an application to the Telecom Minister Mustafa Jabbar in this regard as well.

They have been demanding for withdrawal of VAT of the internet service providers for at least two years.