Internet Service Providers Association of Bangladesh (ISPAB) has urged the government to resolve the complexities over 5 per cent and 15 per cent value added tax (VAT) in the sector by this month.
Otherwise, they threatened to shut down broadband internet connection for two-three hours across the country. They also sought the Prime Minister’s intervention in resolving the complexities.
The internet service providing organisation came up with the statement at a virtual press briefing on Saturday, reports UNB.
“We demand solution to VAT complexities as well as inclusion of ILDC, IIG and ISP industries under Information Technology Enabled Services (ITES) category,” said ISPAB President Md Aminul Hakim.
Md Aminul Hakim said the bill collection has been reduced by 40 to 50 per cent due to Covid-19 pandemic although their employees are working amid health risk.
The imposition of 5 per cent for ISPAB internet and 15 per cent for ITC, IIG and NTTN sectors of 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 per cent at the grassroots level.
Earlier on April 5, the ISPAB sought Tk 6.10 billion 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.