ISPAB Seek Tax Relief Amid Rising Costs
Despite being recognized as an "essential service", Bangladesh's 3,500 broadband internet service providers have yet to be officially classified under Information Technology Enabled Services (ITES). This classification would allow them to access tax benefits and regulatory support, but so far, their demands remain unmet.
Heavy Tax Burden on Broadband Services
The core infrastructure for broadband services—fiber optics—faces a cumulative government charge of 63.40%. Additionally, essential internet equipment such as modems, interface cards, network switches, routers, servers, and batteries are subject to an extra 15.50% Total Tax Incidence (TTI). Furthermore, service providers also bear a 15% Value Added Tax (VAT) on office and Point of Presence (PoP) rental costs.
In response, the Internet Service Providers Association of Bangladesh (ISPAB) has once again submitted a set of five key demands to the National Board of Revenue (NBR). One of their primary demands is the inclusion of broadband internet services under the ITES category. According to reports, ISPAB officials met with the NBR Chairman on March 13 to formally submit their proposals.
Frustration Grows Over Unmet Demands
Despite ISPAB's leadership maintaining close ties with government authorities, many broadband service providers are growing frustrated over the lack of action on their demands. Industry insiders suggest that discussions on budget-related concerns have significantly decreased this year.
According to stakeholders, although internet access is considered a fundamental right, the July internet shutdown following political unrest has weakened industry leaders’ stance in negotiations. Consequently, the sector’s representatives are now less vocal in advocating for their demands compared to previous years.
