NBR Reversed Decision to Impose Supplementary Duty on Call Rates, Internet Usage
In response to widespread criticism, the National Board of Revenue (NBR) has reversed its decision to impose a supplementary duty on call rates, internet usage, and other information technology services.
NBR sources confirmed on Friday, January 17, that the supplementary duty on telecommunication services, such as call rates and mobile internet had been raised from 20% to 23%.
However, this increase will now be reduced back to the original rate of 20%. Additionally, the 10% supplementary duty on Internet Service Providers (ISPs) has been completely withdrawn. The reduction in VAT rates is expected to be formalized through an official notification in the coming days.
Badruzzaman Munshi, Second Secretary of NBR, commented, "The decision to hike VAT across various sectors has been reversed. The Revenue Board has taken the necessary actions, and we anticipate the SRO (Statutory Regulatory Order) will be issued by Sunday. Discussions are ongoing regarding other important products, but no decisions have been made yet."
This move comes after the NBR's January 9 announcement, which raised taxes on over a hundred products and services. The interim government faced significant backlash for increasing VAT on multiple items amid the ongoing inflation crisis.
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