ISPAB threatens to shut services

Deviation of VAT policies concerned them

Staff Correspondent

5 July, 2020 12:00 AM printer

Internet Service Providers Association of Bangladesh (ISPAB) has expressed concern over policy deviation on tax and Value Added Tax (VAT) policies and threatened to shut their services.

The threat of the ISPAB came up at a virtual press conference on Saturday.     

The ISPAB also sought Prime Minister Office (PMO) intervention to review the dual taxation policy on realizing five percent VAT on internet services and additional 15 percent on value chain services.

Md. Aminul Hakim, ISPAB president, said “We are demanding to review the deviation on policies as well as inclusion of ILDC, IIG and ISP industries under Information Technology Enabled Services (ITES) category.”

“Overall bill collection has come down by 40 percent- 50 percent, though internet service providers are providing uninterrupted service during COVID-19,” he added.

He opined that the imposition of five percent for internet and 15 percent for value chain sector (ITC, IIG, NTTN) has created complexities which may disrupt the running internet service.

The tariff of the internet services may increase maximum 40 percent if the concern authorities fail to address the issues, he said.

The internet prices will be stable subject to fixing five percent VAT through revision of the policy, the ISPAB proposed.