A parliamentary body yesterday made a set of recommendations including waiving value added tax (VAT) on internet users and mobile phone SIM card to boost telecom and information technology business in the country.
The parliamentary standing committee on post and telecommunication ministry also recommended that the government reduce tax on internet service equipment to four percent from existing 8 to 31 percent.
“Reduction of tax and VAT on internet and telecom equipment may lessen government's revenue income for the time being. But this step will help increase revenue earning in future as the number of internet and mobile phone users will grow,” Hasanul Haq Inu, chief of the committee, said after the meeting.
At a press conference at the Jatiya Sangsad media centre, Inu said the committee urged the government to implement their recommendations while preparing next fiscal year's budget.
Officials of the post and telecommunications ministry agreed with the recommendations of the parliamentary committee.
The House panel asked the telecommunication ministry to prepare a proposal in light of the committee's recommendation and submit it to the finance ministry soon.
The parliamentary body suggested fixing VAT on mobile phone set at Tk 200 from the existing 12.5 percent.
It also recommended fixing taxes and VAT on all kinds of internet and telecom equipments and imported raw materials of mobile SIM between zero and five percent.
The committee, however, proposed increasing tax on imported fibre optic cable to 25 percent from the existing 3 percent to protect the country's industry.
News Source: The Daily Star