• Thursday, Sep 20, 2018
  • Last Update : 04:38 pm

Muhith: Internet use to see 5% VAT cut

  • Published at 03:26 am June 22nd, 2018
Finance Minister AMA Muhithmahmud-hossain-opu-mg-6147-1529522107198.jpg
Finance Minister AMA Muhith Mahmud Hossain Opu/Dhaka Tribune

Currently, the VAT rate on the internet use is 15%

Finance Minister AMA Muhith on Thursday said the value added tax (VAT) on the internet use would be reduced by 5% to 10% at the end-user level from the next fiscal year.

He came up with the remarks after a meeting with Posts, Telecommunications and Information Technology Minister Mustafa Jabbar, National Board of Revenue (NBR) Chairman Md Mosharraf Hossain Bhuiyan and leaders of various IT organizations at the Economic Relations Division in Dhaka.

The reduced VAT rate would be effective as soon as the national budget for fiscal year 2018-19 was passed on June 28, Muhith said.

Currently, the VAT rate on the internet use is 15%.

"We discussed various small problems of the IT sector with the finance minister when he assured us of resolving all those and fulfilling all the demands of the industry," Mustafa Jabbar told UNB after the meeting.

According to the Bangladesh Telecommunication Regulatory Commission, the total number of internet subscribers around the country reached 85.9 million at the end of April this year.