Thursday 19, May 2022
BN

NBR exempts BTCL from VAT payment

The NBR VAT Policy Wing issued a special order offering the tax benefit.

The BTCL would enjoy the VAT exemption on service charges, paid to various foreign organisations in foreign currencies, with retrospective effect from July 1, 2019.

The company brings different services for the consumers, including internet bandwidth, Google and Facebook peering, Inmarsat, and international outgoing telephone call service. The entity deducts VAT at a reduced rate from the consumers while providing the imported services, and deposits it to the public exchequer.

Again, the BTCL pays a part of the tax-paid service charges to the foreign organisations as revenue sharing, and pays VAT on it.

The NBR order, signed by VAT Policy Wing First Secretary Kazi Farid Uddin, said imposition of VAT again on revenue sharing is double taxation.

Industry insiders said availing services from Google, Facebook, Netflix, etc is subject to pay 32.5 per cent tax, while the highest VAT rate is 15 per cent in Bangladesh.

They also demanded addressing the issue, claiming it double taxation.

SK

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