Internet use to see 5pc VAT cut: Muhith

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

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

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

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

“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.

Source: unb