THE mobile operators have renewed their demand for reduction of corporate tax for the sector on the grounds that the current 40-45 percent is ‘discriminatory’ and demanded 10 percent reduction for listed mobile operation like Grameenphone to 40 percent and 5 percent for non-lusted companies which cover the remaining five. As we see the brisk business in the mobile sector, their demands appear not to be reasonable in view of the huge profit the mobile operators make annually. But again when they ask for harmonization of the corporate tax with many other business sectors, it appears to have a point for consideration. But the question is whether the mobile companies are properly reporting their annual income and how much of it they are repatriating and how much investing again in the country. We hear alienations of controversial reporting on annual income in many cases and we believe that the real income scenario of the mobile operators must be transparent in the first place before the NBR makes a sensible review of the corporate tax rates.
It appears that leaders of the Association of Mobile Telecom Operators of Bangladesh (AMTOB) took the issue to NBR ahead of the National Budget for 2015-16; which is scheduled to be tabled to the Jatiya Sangsad early next month as per a report in a national daily on Tuesday last. As it is evident, they have based their claims saying most companies except banks, insurance and financial institutions, and not listed with the stocks pay 35 percent corporate tax and the listed companies in this category pay 27.5 percent. To make their point saying tobacco does not benefit the society yet pay lesser than mobile companies; which are immensely contributing to the country’s socio-economic development. The association leaders have also demanded withdrawal of Tk 300 SIM tax and Tk 100 SIM replacement tax, besides withdrawal of VAT on Internet usage and modems. The mobile sector now accounts for over 2.63 percent of GDP as per estimates carried out in 2013-14.
We must say the mobile sector is fast expanding and they must pay to the national exchequer exponentially with the rise in their business. They are partner to a fast growing economy where digitalization is playing a crucial role and we hope leaders of the sector would not be backtracking rather coming forth to share their fortune in the form of paying corporate tax. We don’t find enough reason why they call for withdrawal of SIM tax or SIM replacement tax. They are earning handsome income from them and the government may reasonable demand a slice from it. We hope, the mobile sector would remain at the forefront of mobilizing fund for the government while asking reasonable concession; they can really justify their claim.
