Telecom operators demand VAT withdrawal on internet usage

Telecom operators today demanded the government to withdraw Value added tax (VAT) on internet usage in the next budget.

Otherwise, the ambition to create a Digital Bangladesh will not be fulfilled, TIM Nurul Kabir, secretary general of Association of Mobile Telecom Operators in Bangladesh (AMTOB) told reporters in a pre-budget meeting at the National Board of Revenue (NBR).

Currently, there is a 15percent VAT (Value Added Tax), 5 percent supplementary duty and 1 percent surcharge on internet usage, Nurul Kabir said.

And these tax and charges are the main barrier of internet penetration in the country, he added.

At present, only 18 percent people are using internet in the country. There are about 6.72 crore internet connections but the number of unique users is very few.