B Mirror Report: The Internet Service Providers Association of Bangladesh (ISPAB) has called for internet services to be declared an essential product and demanded income tax exemption for the sector, aiming to make internet access more affordable for consumers.

The demand was raised during a pre-budget discussion for the fiscal year 2026–27 held at the National Board of Revenue (NBR) headquarters on Saturday. The session was chaired by NBR Chairman Md. Abdur Rahman Khan.

ISPAB also proposed reducing the tax burden on key equipment such as internet modems, routers, and servers from 15 percent to zero percent. The association highlighted that high transmission costs charged by NTTN operators and inadequate infrastructure at the district level are major barriers to expanding high-speed internet across rural areas.

The organization further stated that VAT remains a significant obstacle to affordable internet services. While consumers currently pay 5 percent VAT, ISPs are required to pay 15 percent VAT on office rent and other operational expenses without input tax credit, increasing overall service costs. ISPAB urged reducing VAT across all stages of internet services to 5 percent.

Meanwhile, the Bangladesh Computer Samity (BCS) also demanded a revision of the tax structure to make internet and digital devices more affordable. The organization said rising import costs and high duties have made computers significantly more expensive, pushing prices from Tk 25,000–30,000 to nearly Tk 65,000 or more.

BCS warned that high prices are hindering the country’s potential to develop millions of freelancers, despite opportunities for up to 2.7 million unemployed youth in the digital economy. It proposed removing VAT on laptops and reducing import duty to 5 percent.

The association also raised concerns over high duties on computer components such as monitors, SSDs, and memory cards. It said monitors face nearly 40 percent tax and memory cards around 37 percent, leading to a rise in substandard and counterfeit products in the market. BCS cautioned that high taxation on sensitive components like SSDs and memory cards increases the risk of data loss for users.

Both organizations urged the government to reform the tax structure to promote digital inclusion and support the growth of Bangladesh’s IT and internet sectors.