Economic Reporter :
Four private mobile operators of Bangladesh evade more than Tk 900 crore in name of SIM replacement.The Value Added Tax (VAT) branch of Large Tax Unit (LTU) of National Board of Revenue (NBR) has issued the final summons on the issue recently.
If the companies fail to pay the due revenue after final summons, as a part of legal action, the bank accounts of four mobile operators namely Grameen Phone Ltd, Banglalink Communiactions Ltd, Robi Axiata Ltd and Airtel Bangladesh Ltd could be seized.
Among four companies the Grameen Phone Ltd has evaded the highest amount of revenue worth Tk 378, 95, 37,820. Banglalink Communications Ltd has evaded Tk 168, 91, 49,052; Robi Axiata Ltd Tk 285, 20, 90,535 and Airtel Bangladesh Ltd Tk 50, 26, 98,322 have evaded VAT revenue.
According to NBR explanation on 13 June 2015, if any SIM buyer loose SIM due to theft, destruction in that case no tax should be paid on SIM replacement but mobile operators have to submit report on such replacement monthly and keep record adequetly. But the four operators had not submitted any information on those issues. Moreover, the operators did not abide the instructions of SIM registrtion issued by BTRC on 18 August 2010. It means, the four mobile operators sold new SIMs in name of SIM replacement by disobeying law and regulations.
In the letter issued to Grameen Phone, it was noted that from July 2012 to December 2015 Grameen Phone sold 10603358 SIMs in name of SIM replacement and had evaded Tk 240,06,12,194 as supplementary duty and Tk 138,89,25,626 as VAT, a total amount of Tk
378, 95, 37,820 revenue had been evaded by the Grameen Phone Ltd.
In the letter issued to Banglalink Ltd, it was noted that from July 2012 to June 2015 Banglalink sold 4575277 SIMs in name of SIM replacement and had evaded Tk 107,00,49,173 as supplementary duty and Tk 61,90,99,878 as VAT, a total amount of Tk 168,91,49,052 revenue had been evaded by the Banglalink Ltd.
In the letter issued to Robi Axiata Ltd, it was noted that from July 2012 to June 2015 Robi sold 7525763 SIMs in name of SIM replacement and had evaded Tk180,67,54,185 as supplementary duty and Tk 104,53,36,349 as VAT, a total amount of Tk 285,20,90,535 revenue had been evaded by the Robi Axiata Ltd.
In the letter issued to Airtel, it was noted that from July 2012 to June 2015 Robi sold 1359586 SIMs in name of SIM replacement and had evaded Tk 31,84,51,426 as supplementary duty and Tk 18,42,46,896 as VAT, a total amount of Tk 50,26,98,322 revenue had been evaded by the Airtel Bangladesh Ltd.
In the four letters it was mentioned that according to the case report, show cause notice, Operators rpeort, non-cooperation of the operators and failure to submit SIM replacement information papers the mobile operators had failed to prove their instance and evaded huge amount of revenue.
The operators were asked to pay the evaded amount of revenue and show cause on the issue.
LTU sources said, according to VAT Act, 1991 section 55 (3) the final summons and show cause notice has been issued against the private mobile operators of the country. The operators will get three months to pay due VAT and do appeal. To make an appeal, they have to pay 10 per cent of due revenue. If companies do not pay revenue or make any appeal, a letter would be issued again after three months. Then again another will be issued for second time after a week. If the companies still fail to pay the due revenue, LTU will request Bangladesh Bank to seize the bank accounts of private mobile operators of Bangladesh.
The private mobile operators of Bangladesh, in name of SIM replacement have sold new SIMs against such allegation NBR issued a notice on July 28, 2013.
According to the notice, a committee was formed on 15 December 2015 by making a commissioner of LTU (VAT) head of the committee. Later, on 27 February 2016, by making a additional commissioner head of the committee, the committee was been reformed uniting five members of that four mobile operators, Association of Mobile Telecom Operators of Bangladesh (AMTOB) and BTRC.
The new committee reanalyzed submitted paper of the four mobile operators. As there was legal accountability according to NBR instruction, BTRC guideline on revenue gathering of SIM replacement tax, LTU issued a letter to the four mobile operators.
Four private mobile operators of Bangladesh evade more than Tk 900 crore in name of SIM replacement.The Value Added Tax (VAT) branch of Large Tax Unit (LTU) of National Board of Revenue (NBR) has issued the final summons on the issue recently.
If the companies fail to pay the due revenue after final summons, as a part of legal action, the bank accounts of four mobile operators namely Grameen Phone Ltd, Banglalink Communiactions Ltd, Robi Axiata Ltd and Airtel Bangladesh Ltd could be seized.
Among four companies the Grameen Phone Ltd has evaded the highest amount of revenue worth Tk 378, 95, 37,820. Banglalink Communications Ltd has evaded Tk 168, 91, 49,052; Robi Axiata Ltd Tk 285, 20, 90,535 and Airtel Bangladesh Ltd Tk 50, 26, 98,322 have evaded VAT revenue.
According to NBR explanation on 13 June 2015, if any SIM buyer loose SIM due to theft, destruction in that case no tax should be paid on SIM replacement but mobile operators have to submit report on such replacement monthly and keep record adequetly. But the four operators had not submitted any information on those issues. Moreover, the operators did not abide the instructions of SIM registrtion issued by BTRC on 18 August 2010. It means, the four mobile operators sold new SIMs in name of SIM replacement by disobeying law and regulations.
In the letter issued to Grameen Phone, it was noted that from July 2012 to December 2015 Grameen Phone sold 10603358 SIMs in name of SIM replacement and had evaded Tk 240,06,12,194 as supplementary duty and Tk 138,89,25,626 as VAT, a total amount of Tk
378, 95, 37,820 revenue had been evaded by the Grameen Phone Ltd.
In the letter issued to Banglalink Ltd, it was noted that from July 2012 to June 2015 Banglalink sold 4575277 SIMs in name of SIM replacement and had evaded Tk 107,00,49,173 as supplementary duty and Tk 61,90,99,878 as VAT, a total amount of Tk 168,91,49,052 revenue had been evaded by the Banglalink Ltd.
In the letter issued to Robi Axiata Ltd, it was noted that from July 2012 to June 2015 Robi sold 7525763 SIMs in name of SIM replacement and had evaded Tk180,67,54,185 as supplementary duty and Tk 104,53,36,349 as VAT, a total amount of Tk 285,20,90,535 revenue had been evaded by the Robi Axiata Ltd.
In the letter issued to Airtel, it was noted that from July 2012 to June 2015 Robi sold 1359586 SIMs in name of SIM replacement and had evaded Tk 31,84,51,426 as supplementary duty and Tk 18,42,46,896 as VAT, a total amount of Tk 50,26,98,322 revenue had been evaded by the Airtel Bangladesh Ltd.
In the four letters it was mentioned that according to the case report, show cause notice, Operators rpeort, non-cooperation of the operators and failure to submit SIM replacement information papers the mobile operators had failed to prove their instance and evaded huge amount of revenue.
The operators were asked to pay the evaded amount of revenue and show cause on the issue.
LTU sources said, according to VAT Act, 1991 section 55 (3) the final summons and show cause notice has been issued against the private mobile operators of the country. The operators will get three months to pay due VAT and do appeal. To make an appeal, they have to pay 10 per cent of due revenue. If companies do not pay revenue or make any appeal, a letter would be issued again after three months. Then again another will be issued for second time after a week. If the companies still fail to pay the due revenue, LTU will request Bangladesh Bank to seize the bank accounts of private mobile operators of Bangladesh.
The private mobile operators of Bangladesh, in name of SIM replacement have sold new SIMs against such allegation NBR issued a notice on July 28, 2013.
According to the notice, a committee was formed on 15 December 2015 by making a commissioner of LTU (VAT) head of the committee. Later, on 27 February 2016, by making a additional commissioner head of the committee, the committee was been reformed uniting five members of that four mobile operators, Association of Mobile Telecom Operators of Bangladesh (AMTOB) and BTRC.
The new committee reanalyzed submitted paper of the four mobile operators. As there was legal accountability according to NBR instruction, BTRC guideline on revenue gathering of SIM replacement tax, LTU issued a letter to the four mobile operators.
