AMTOB urges not to levy fresh tax on telcos

The country's mobile phone operators proposed the National Board of Revenue (NBR) not to impose fresh burdens of tax every year on them considering the sector's contribution to Bangladesh's economy. They said the sector is contributing to the country's GDP at an estimated rate of 7.0 per cent per year.

The Association of Mobile Telecom Operators of Bangladesh (AMTOB) leaders placed a set of recommendations in a virtual pre-budget meeting on Thursday at the NBR for fiscal year 2021-22.

AMTOB secretary general SM Farhad recommended withdrawal or rationalisation of the minimum 2.0 per cent tax on the annual turnover of mobile phone companies that the NBR imposed irrespective of profit or loss of the company.

The operators pay 6.5 per cent to the Bangladesh Telecommunication Regulatory Commission (BTRC) based on gross revenue, the AMTOB proposal said.

In case of not waiving the tax, the AMTOB leaders proposed to cut the tax to 0.5 per cent in line with the tax rate for other sectors.

The tax is not aligned with the fundamental principle of profit-based taxation as it is imposed irrespective of profit or loss, the AMTOB proposal said.

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AMTOB requested the NBR to provide clear guidelines regarding VAT exemption for government agencies and to rationalise the interest charged on unpaid VAT 

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MrFarhad also proposed to cut corporate tax rates for non-listed companies to 32.5 per cent and listed operators to 25 per cent similar to other corporate taxpayers.

Currently, publicly-listed mobile phone operators have to pay corporate tax at a rate of 40 per cent while it is 45 per cent for non-listed mobile phone companies.

He also sought amortisation facilitates on all intangible assets, waiver of Tk 200 tax on mobile SIM card, reducing VAT, SD, and surcharge reasonably from current 33.25 per cent and 21.75 per cent on talk time and internet usage respectively.

They also requested the NBR to provide clear guidelines regarding VAT exemption for government agencies and to rationalise the interest charged on unpaid VAT.