Broadband providers seek sharp cut in equipment duties

Broadband internet providers today (13 March) requested the National Board of Revenue (NBR) to cut the import duties on the major internet-related equipment for competencies to serve the upcoming wave of internet boom.

During a pre-budget discussion with the revenue board, the Internet Service Providers' Association of Bangladesh (ISPAB) proposed that the revenue board bring down the taxes imposed on imported internet within 15% from the existing nearly 60%, the association's President Md Emdadul Hoque told The Business Standard after the meeting.

"Broadband penetration in Bangladesh is still low—not more than 12% of the total internet connections. For the expected digital boost, we need all citizens using high-speed internet," he added.

The government once had cut the duty against imports of dial-up routers to zero, which helped household internet penetration in the early days, he said, adding that similar support is needed now.

The broadband industry provides IT-enabled services (ITES), but the tax authority does not include them in the list of tax benefit recipients as ITES.

ISPAB, in its budget proposal for 2025-26, requested NBR to consider them as ITES so that they enjoy the tax waiver till 2027.

Besides, the 15% advance income tax applicable in each corporate broadband connection is hurting the service providers, ISPAB said, requesting to cut it to 2%-3%.

ISPs await a competition with Satellite internet providers in the coming days, and competency will be their key to survive and thrive, he said.

Without supportive policies and tax structures, fiber-based internet providers might struggle to increase competencies, said the association president.