In the case of broadband internet, the government has withdrawn the additional 5 per cent value added tax or VAT. Internal Resources Department and National Board of Revenue (NBR) Chairman Senior Secretary Abu Hena. This information has been given in the circular signed by Rahmatul Munim.

The circular, issued on Tuesday (August 25), states that the government, under the powers of sub-section 1 of section 126 of the Value Added Tax and Supplementary Duty Act, 2012, has created International Terrestrial Cable (ITC), International Internet Gateway (IIG) and Nationalwide Telecommunication Transmission (NT). In case of service, additional 5 percent value added is exempted.

The government had increased the tax on mobile services in the budget for the fiscal year 2020-21. The supplementary duty was increased from 5 per cent to 15 per cent.

As a result of the new notification, 5 per cent VAT on the Internet and 15 per cent VAT on other value chain sectors (ITC, IIG, NTTN) has come to an end, officials said.

In the case of broadband internet, the government has withdrawn the additional 5 per cent value added tax or VAT. To this end, the Internal Resources Department of the Finance Ministry has issued a notification on August 25 exempting ITC, IIG and NTTN services from 5 per cent additional VAT.

Under the pressure of VAT, the fear of not getting internet service to 30 million customers came to an end this time.