Leaders of information and communication technology sector on Tuesday demanded that the National Board of Revenue should withdraw 15 per cent value-added
tax on internet use and data transmission services.
At a pre-budget discussion with the NBR, they also sought exemption from paying VAT on transactions under e-commerce services for at least 3-5 years to promote the sector.
As a part of the discussion for preparing the budget for 2013-2014 financial year, the NBR discussed separately with businessmen from computers, information and communication technology and telecommunications.
‘VAT on internet use should be withdrawn to avail the facility at the grassroots level as a part of digitalisation in every sector in the country, said Akhtaruzzaman Manju, president of the Internet Service Providers Association of Bangladesh.
The ISPAB also sought reduction of duty on import of all kinds of cellular and telephone set, phone cable and wireless, transmitting and receiving apparatus, modem, interface card, switch, router and other apparatus for transmission or reception of voice image or other data to 4 per cent.
Currently, importers are to pay duties including customs duty, regulatory duty, VAT, AIT (advance income tax) and ATV (advance trade VAT) ranging from 9 per cent to 51 per cent on import.
Bangladesh Association of Software and Information Services president Fahim Mashroor demanded exemption from paying VAT at the rate of 4.5 per cent for the information technology-enabled services for at least 3 years.
Telecommunication Infrastructure Operators of Bangladesh president Mir Nasir Hossain demanded tax holiday for five years for newly-established 50 companies in the field of International Gateway and Inter Connect Exchange.
He also demanded that the NBR should reduce the tax deduction at sources to 0.5 per cent from the existing 1 per cent for the sector.
Bangladesh Computer Samity president Moinul Islam demanded reduction of advance income tax at import level to below 4 per cent from the existing 5 per cent.
NBR chairman Ghulam Hussain assured that the revenue board would consider the proposals while preparing budget-related recommendations for the government.
-With New Age input
