ISPAB had been making the threats for a long time over the differences on VAT rates - 5 percent on internet services and 15 percent on the internet-related value chain services provided by ITC, IIG and NTTN. It said the differences could have a detrimental effect by driving up the cost of internet services by 30-40 percent in the country. The problem emerged after the government lowered the VAT on internet services provided by ISPs and mobile telecom operators to 5 percent in the budget for FY 2018-19 while imposing a 15 percent VAT on other value chain services. The National Board of Revenue later revised down the VAT rates to 5 percent for internet and value chain services. But the crisis resurfaced after the government reinstated the different VAT rates for the two services in the budget for fiscal 2019-20.

Source: bd News24 August 27, 2020 15:45 UTC