Internet service providers of the country have called for withdrawing VAT on internet prices, saying it will be difficult to reduce internet prices if transmission costs and taxes are not brought down, says a report by the Daily Star.
Currently, ISP's pay 15 percent VAT when they buy bandwidth from the IIGs, and customers pay another 15 percent VAT on bills which collectively make the prices too high. Similarly, IIGs have to share 10 percent of gross revenue with the government, which also leaves an impact on the charges at the user level.
Internet business is a pretty big industry in Bangladesh, BDT 130-crore industry, and for ISPs transmission has become a major cost in recent years. The industry insiders believe, Government can reap better benefits by helping the sector grow instead of imposing extra VAT on it.