VAT on internet use to go down

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Bangla Tribune Report
Published : 19:55, Jun 21, 2018 | Updated : 19:57, Jun 21, 2018

According to industry insiders, the state coffer earns about Tk 11 billion in VAT on internet use.The finance ministry has assured of reducing the value added tax (VAT) on using internet, says Bangladesh Association of Software and Information Services (BASIS).
BASIS President Syed Almas Kabir said that the decision to cut it down by 5 percentage points came on Thursday during a meeting between Finance Minister AMA Muhith, Telecom and ICT Minister Mustafa Jabbar and IT industry leaders.
Currently VAT on internet usage is 15 percent and will become 10 percent following the cut.
“The finance minister decided to reduce the VAT by five percentage points during the meeting,” Kabir told Bangla Tribune.
For the last seven years, all the trade bodies of digital and IT services have been urging the government to withdraw it but found no response from the policy makers.
According to industry insiders, the state coffer earns about Tk 11 billion in VAT on internet use.
On Wednesday, all the seven IT-related bodies demanded the withdrawal of all kinds of VAT taxes on internet use in the budget for 2018-19 fiscal.
Muhith had also slapped 5 percent VAT on online shopping in his budget proposal presented on June 7, but the NBR said the next day it was a printing mistake and will be withdrawn.

/hah/zmi/
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