Cut VAT on internet network devices: FBCCI

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) yesterday urged the government to permit active Internet Connection Sharing (ICS) and reduce VAT on network devices to make internet services cheaper for the end users.

The apex trade body made the call at the first meeting of the FBCCI standing committee on "digital connectivity, networking and business-process outsourcing (BPO) in Bangladesh" at the trade body's office in Dhaka.

It said due to high VAT imposed on small devices, including routers, modems and cables, the internet is not affordable to many despite the country making a stride in going digital.

"The cost of the internet is so much higher as the active sharing of the internet network, a very effective distribution system, is not allowed in the country," said Syed Almas Kabir, a director of the FBCCI and director in charge of the committee.

The ICS is a windows service that enables one internet-connected computer to share its internet connection with other computers on a local area network (LAN).

As the internet infrastructure is now being built to reach all parts of the country, immediate VAT reduction on internet supply equipment and permission of active sharing of interment networks is very essential to provide internet at affordable prices to the people across the country, Kabir said.