Internet use likely to see 5pc VAT cut in new fiscal

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

Currently, the VAT rate on the internet use is 15 per cent, reports UNB.

He said this after a meeting with posts, telecom 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 capital.

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

"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 newsmen after the meeting.