Staff Reporter :
The Bangladesh Telecommunications Company Limited (BTCL) has appealed to the National Board of Revenue (NBR) for the withdrawal of a 10% tax at source on their data internet service purchases.
This request seeks to eliminate double taxation and ensure the continued affordability of internet services across the country.
In a letter to the NBR, BTCL highlighted their role in providing low-cost data internet and telecommunication services, particularly in remote areas and union levels, including hill towns. However, their efforts are hampered by the double taxation on bandwidth purchases.
BTCL explained that they acquire bandwidth from international operators using foreign currency. These transactions are subject to a 10% tax at source deduction. However, the foreign operators likely pay applicable income and other taxes in their own countries as well. To prevent this double taxation, BTCL proposes a solution.
They suggest that the 10% source tax at the local level can be withdrawn if the foreign companies supplying bandwidth furnish sufficient documentation proving their tax payments in their respective countries.
BTCL emphasized that the current system leads to financial losses and potentially hinders their ability to offer affordable services. They argue that the double taxation significantly inflates the cost of bandwidth, a crucial factor in determining consumer internet prices.
BTCL’s request underscores their commitment to providing low-cost internet access throughout Bangladesh. By eliminating the double taxation burden, BTCL hopes to maintain their role in facilitating technological development, particularly in underserved areas.