A parliamentary body on Wednesday recommended waiving VAT (Value Added Tax) on Internet users and mobile phone SIM cards to boost up telecom and information technology business in the country.
In its set of recommendations, the parliamentary standing committee on post and telecommunication ministry also asked the government to reduce tax on Internet service equipment by four percent from existing 8 to 31 percent.
“Cutting off tax and VAT on network systems, internet and telecom sector equipments may lessen government’s revenue income for the time being. But this step will increase revenue earning in the long run as internet and mobile phone users will increase,” Hasanul Haq Inu, chief of the committee, said after the meeting.
Addressing a press conference at the Jatiya Sangsad Media Centre after the meeting, Inu said the parliamentary committee urged the government to implement their recommendations while preparing next fiscal budget.
Officials of the post and telecommunication ministry agreed with the proposals of the parliamentary committee.
The committee asked the ministry to prepare a proposal in the light of the committee’s recommendations and to submit it before the finance ministry soon.
The parliamentary body also recommended slapping VAT on mobile phone set at Tk 200 from the existing 12.5 percent.
It also recommended to reduce taxes and VAT on all kinds of equipments and network systems on telecom sectors and imported raw materials of mobile SIM by zero to five percent.
The committee, however, recommended increasing tax on imported fiber optic cable to 25 percent from existing three percent to protect country’s industry who are producing optical fiber cable.
News Source:
The Daily Star