Desk report:
- New supplementary tax impacts legitimate ISPs: The imposition of a new supplementary tax on broadband internet services is negatively impacting legitimate ISPs.
- Decline in legitimate ISP subscribers: Subscribers are shifting to illegal ISPs offering cheaper, albeit lower quality, services due to the increased costs.
- Call for tax withdrawal: Speakers urged the government to withdraw the additional VAT and focus on making internet services more affordable.
- Concerns over service quality: The increased tax burden is hindering the ability of legitimate ISPs to provide quality services to customers.
- Potential for protests: The Bangladesh Mobile Phone Customers Association has threatened to protest against the government’s decision if the supplementary tax is not withdrawn
The imposition of a new supplementary tax on broadband internet services has put legitimate ISPs (Internet Service Providers) in dire straits. The number of subscribers of legitimate ISPs is decreasing, while the number of subscribers of illegal ISPs is increasing.
Speakers expressed these concerns at a roundtable discussion titled ‘Ensuring Internet Access: Challenges and Recommendations’ organized at the Daily Star Center in the capital on Thursday. The meeting was organized by the Technology Industry Policy Advocacy Platform (TPAP). The speakers said that instead of imposing additional VAT and tax on internet services, emphasis should be placed on providing these services to the people of the country at affordable prices. They claimed that if VAT is not withdrawn, the crisis in internet services will further increase and it will become difficult for legitimate institutions to survive.
Internet Service Providers Association of Bangladesh (ISPAB) President Imdadul Haque said, ‘Currently, the government will take 155 taka directly from the internet package of 1,000 taka. If such a tax is imposed on customers, it will create tension in their relationship. Taking this opportunity, customers will turn to illegal ISPs that offer cheap but low-quality services. As a result, legitimate ISPs will lose customers. Until our costs are reduced, customers will not get quality services.’
Mohiuddin Ahmed, president of the Bangladesh Mobile Phone Customers Association, said that the government is collecting 70-80 percent of the revenue from operators. As a result, the quality of mobile and internet services is decreasing day by day. If the supplementary tax is not withdrawn, we will surround the NBR and, if necessary, the secretariat. Such a decision by the government is completely reckless.
