Internet price for the end users will get cheaper from the next month as the government has reduced the value-added tax (VAT) for the backward linkage of internet service providers to 5 percent effecting from Dec 1.

“Decision has taken to cut VAT on International Internet Gateway (IIG) by 5 percent and to reduce 15 percent VAT on National Nationwide Telecommunication Transmission Network (NNTTN) to 5 percent,” Posts, Telecommunications Minister Mustafa Jabbar told Bangla Tribune on Thursday (Nov 29).

“This step will benefit more than 90 million internet users as all the internet service providers (ISPs) will be paying 5 percent VAT down from the existing 15 percent” Jabbar said.

The minister, however, said existing 5 percent VAT on the end users will remain unchanged.

On Nov 25, Finance Minister AMA Muhith instructed the authorities concerned to impose a unified 5 percent VAT on internet.

The instruction came after Muhith held a joint meeting with National Board of Revenue, Bangladesh Telecommunication Regulatory Commission and a delegation of ISPs on the same day.

ISPs owners, however, are doubtful over the implementation of VAT cut until official order is issued.

Secretary General of Internet Service Providers Association of Bangladesh (ISPAB) Imdadul Haque told Bangla Tribune, “We can’t be hopeful until a statutory regulatory order (SRO) is issued.

The ISPs association leader admitted that imposing a unified 5-percent VAT on internet would reduced their product and service cost.

“Eventually, the end users will enjoy the benefits and more reduction of existing net price is possible,” Haque said.