The National Board of Revenue has slashed the value-added tax on licence fees, spectrum charge and revenue sharing of Wimax operators and internet service providers by more than 66 per cent to facilitate the internet services in the country.
The revenue board on April 1 issued a special order reducing VAT on licence fee, spectrum charge and revenue sharing of Wimax [wireless internet service] operators, broadband wireless access operators and internet service providers to 5 per cent from the existing 15 per cent.
NBR officials said that the VAT was reduced in line with reduction of VAT on 3G license and spectrum fees for mobile phone operators.
Internet penetration will increase in the country because of reduction of VAT on licence fee, spectrum allocation and revenue sharing as it will make internet uses cheaper, they said.
According to the order, the revenue board fixed tariff value for imposing VAT and will impose VAT on 33.33 per cent of licence fee, spectrum charge, renewal fees of licence and spectrum allocation and revenue sharing.
The operators, however, will not get any input credit in this regard, the order said.
The revenue board may change or cancel the tariff value any time considering public interest, it added.
Till now, Bangladesh Telecommunication Regulatory Commission has issued two BWA licences and 281 ISP licences. The BTRC has also issued another 198 ISP with cyber café licence for providing internet services in urban areas.
Wimax operators under BWA licence and ISPs have to share a portion of their annual revenue with the Bangladesh Telecommunication Regulatory Commission as a condition of licences.
Wimax operators provide wireless broadband internet services across the country while ISP operators provide the services through dialup, cable, wireless and DSL broadband internet connection to subscribers.
Currently, Banglalion and Qubee are operating in the country as Wimax operators while there are a total of 479 ISPs providing services across the country. Of them, 123 are providing services nationwide.
-With New Age input
