VAT complexities: Internet service providers seek PM’s intervention

Internet Service Providers Association of Bangladesh (ISPAB) has sought Prime Minister Sheikh Hasina’s intervention in resolving the complexities over 5% and 15% value added tax (Vat) in the sector.

The organization made the appeal at a virtual press briefing Saturday, reports UNB.

“We demand solution to Vat complexities as well as inclusion of ILDC, IIG and ISP industries under the information technology enabled services (ITES) category,” said ISPAB President Md Aminul Hakim.

He said that if this problem was not resolved, the price of internet service might be increased by 30-40% at the grassroots level.

Meanwhile, the 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 that the bill collection decreased by 40-50% due to Covid-19 pandemic although their staff had been working amid health risk.

The imposition of 5% for ISPAB internet and 15% for ITC, IIG and NTTN sectors of value chain 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 were not resolved, the activities in this service sector might face interruption, he added.

Earlier on April 5, the ISPAB sought Tk610 crore government grant to keep the services uninterrupted and protect the sector from losses during the coronavirus outbreak.

 ISPAB submitted an application to 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.