BSS, Dhaka :
Association of Mobile Telecom Operators of Bangladesh (AMTOB) has urged the government to go for proper tax reform to help mobile network operators (MNOs) to contribute more to country’s economy.
As per GSMA’s calculation MNOs’ contribution to Bangladesh’s GDP is currently 7 percent, which is possible to increase significantly, it said in a budget proposal placed recently to National Board of Revenue (NBR), said a press release on Thursday.
“Since the sector has already been going through multiple issues regarding taxation, it is time to find solutions encouraging the industry to add more value in coming days,” said AMTOB President Mahtab Uddin Ahmed.
AMTOB requested NBR to consider elimination of the current SIM tax of Taka 200 per SIM, saying it is a major barrier for MNOs to take the service to lower-income people.
It appealed for rationalization of corporate income tax, saying the current corporate tax for mobile industry is 45 percent, which is 22 percent in India, 30 percent in Pakistan and Nepal, 28 percent in Sri Lanka and 20 percent in Afghanistan.
AMTOB requested to rationalize corporate tax to 30 percent, the same rate as the standard for other companies in Bangladesh.
The body said minimum turnover tax is against the spirit of income tax, mentioning that MNOs which are incurring loss or generating profit less than 2 percent of their revenue are paying this tax from the equity injected by shareholders.
It requested NBR to eliminate minimum turnover/corporate tax to foster sustainability of the industry.
AMTOB proposed VAT exemption for government regulatory agencies to ensure consistency in regulation, which will reduce complexity, non-value adding administration, and avoid potential disputes for both parties- NBR and operators.
It said revenue sharing should be VAT exempted from the ground of double taxation.
“To ascertain the consequence of COVID-19 is still difficult, but the mobile service will face huge challenges shortly if the regulatory, tax and VAT related issues are not addressed immediately,” said AMTOB Secretary General Brig Gen (Retd) S M Farhad.
Association of Mobile Telecom Operators of Bangladesh (AMTOB) has urged the government to go for proper tax reform to help mobile network operators (MNOs) to contribute more to country’s economy.
As per GSMA’s calculation MNOs’ contribution to Bangladesh’s GDP is currently 7 percent, which is possible to increase significantly, it said in a budget proposal placed recently to National Board of Revenue (NBR), said a press release on Thursday.
“Since the sector has already been going through multiple issues regarding taxation, it is time to find solutions encouraging the industry to add more value in coming days,” said AMTOB President Mahtab Uddin Ahmed.
AMTOB requested NBR to consider elimination of the current SIM tax of Taka 200 per SIM, saying it is a major barrier for MNOs to take the service to lower-income people.
It appealed for rationalization of corporate income tax, saying the current corporate tax for mobile industry is 45 percent, which is 22 percent in India, 30 percent in Pakistan and Nepal, 28 percent in Sri Lanka and 20 percent in Afghanistan.
AMTOB requested to rationalize corporate tax to 30 percent, the same rate as the standard for other companies in Bangladesh.
The body said minimum turnover tax is against the spirit of income tax, mentioning that MNOs which are incurring loss or generating profit less than 2 percent of their revenue are paying this tax from the equity injected by shareholders.
It requested NBR to eliminate minimum turnover/corporate tax to foster sustainability of the industry.
AMTOB proposed VAT exemption for government regulatory agencies to ensure consistency in regulation, which will reduce complexity, non-value adding administration, and avoid potential disputes for both parties- NBR and operators.
It said revenue sharing should be VAT exempted from the ground of double taxation.
“To ascertain the consequence of COVID-19 is still difficult, but the mobile service will face huge challenges shortly if the regulatory, tax and VAT related issues are not addressed immediately,” said AMTOB Secretary General Brig Gen (Retd) S M Farhad.
