ISPAB Seeks Tax Cuts to Scale Speed and Strengthen Services

The Internet Service Providers Association of Bangladesh (ISPAB) has demanded income tax exemption for the sector by recognizing internet services as an essential service. At the same time, the organization has called for the withdrawal of the existing 63.40 percent tax burden on the import of optical fiber cables.

These proposals were presented by the organization’s Treasurer, Moin Uddin Ahmed, during the pre-budget discussion for the 2026–27 fiscal year held at the National Board of Revenue (NBR) building in Agargaon, Dhaka, on Saturday, 25 April. He was accompanied by Director Rashedur Rahman Rajan, CFO of ADN Telecom Limited Nazimuddin, and CFO of Agni Systems Limited Saiful Islam. Representing the organization’s secretariat were Office Secretary Bijoy Kumar Pal and Accounts Manager Moinul Islam.

The meeting was chaired by NBR Chairman Md. Abdur Rahman Khan. Representatives from other technology sector organizations, including BCS and e-CAB, also participated in the same session. According to sources, BASIS is scheduled to submit its proposals on 26 April.

During the discussion, ISPAB stated that reducing the existing 15 percent tax on networking products such as internet modems, routers, and servers to zero would facilitate service expansion. The organization noted that high transmission costs imposed by Nationwide Telecommunication Transmission Network (NTTN) operators, along with infrastructural limitations at the district level, are making it difficult to deliver high-speed internet at the grassroots level.

Additionally, ISPAB identified Value Added Tax (VAT) as a major barrier to making internet services affordable. Although there is a 5 percent VAT at the consumer level, ISPs are required to pay 15 percent VAT on office rent and other operational expenses, without any adjustment facility. This, they said, is increasing production costs. In this context, the organization has demanded that VAT be reduced to 5 percent across all stages of internet service delivery.

Stakeholders believe that if the proposals raised in this pre-budget discussion are implemented, they will have a positive impact on the development of the country’s digital infrastructure, expansion of internet access, and growth of the information technology sector.

DBTech/SI/MIIM/OR