Leaders in information and communication technology (ICT) sector emphasised withdrawal of Value Added Tax (VAT) on internet use to make it affordable for greater value addition of the society.
They said internet is the gateway to all types of activities, so it should be considered as the essential item in a bid to ensure people's access to information. At present, internet users pay 15 per cent VAT.
Professionals from Bangladesh Association of Software and Information Services (BASIS), Bangladesh Computer Samity (BCS) and Internet Service Providers Association of Bangladesh (ISPAB) expressed these views at a pre-budget discussion on the ICT sector in the city Saturday.
State minister for ICT Junaid Ahmed Palak echoed the professionals and said, "The importance of internet is so high because it is the core path for information technology."
"I will request the Finance Minister to slash VAT on internet use," he said in the pre-budget discussion.
The minister said the present government was cordial to ICT-related issues. He mentioned that his government improved internet penetration to 24 per cent from 3 per cent in 2009.
Underlying the importance of the sector, Mr Palak said budget allocation in the ICT sector would be Tk 37 billion, in the next fiscal year which is many times more than the previous years. Five years ago, the allocation was only around Tk 2.0 billion, he added.
The state minister also mentioned: "We will manage loan for the ICT entrepreneurs at single-digit interest rate." He added the government would set up a research and development centre to scrutinise the best IT related businesses for the country.
Besides, the ICT sector leaders from different trade bodies placed a number of demands and maximum of them advocated VAT and tax withdrawal in the discussion meeting.
Senior vice president of BASIS Almas Kabir said in a presentation that people pay only 2.5 per cent VAT for purchasing gold ornaments which is a luxury product; but the government takes 15 per cent VAT on internet use which is a very important tool for implementation of the Digital Bangladesh dream.
The government gets a very small amount of money as VAT from internet but if it is withdrawn its result will be tremendous as use of internet will be boosted.
