Bangladesh will bring down the cost of internet, finally, bowing to the long overdue demand of consumers and ICT-related trade bodies.
Finance Minister AMA Muhith, at today’s parliament session, announced that the VAT on internet will come down from the existing 15 per cent to 5 per cent.
He made the announcement while revising the budget for fiscal 2018-19 at the conclusion speech of budget session. Tomorrow, the revised budget will be passed.
The revised down costing is expected to come to effect from July 1.
For the last seven years, the telecom and ICT industry have been demanding to withdraw VAT from end users level internet using.
Though a complete withdrawal is not yet taking place, the drastic reduction in VAT is likely to draw appreciation.
With the revised rate, a 5 percent supplementary duty and 1 percent surcharge is still remaining in place for using internet through mobile phones.
In his budget proposal for 2018-19 finance minister earlier proposed to imposed 5 percent VAT on computer hardware for the first time which the finance minister today also decided to withdraw.