Proposal to withdraw tariff and increase tax on mobile data
The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has proposed to reduce the supplementary duty on mobile internet or data services from 15 per cent to 5 per cent. At the same time, they proposed to increase the value added tax from 5 percent to 15 percent.
Retired Brigadier General SM Farhad, secretary general of the National Board of Revenue (NBR), made the proposal during a pre-budget discussion with the National Board of Revenue (NBR) on Wednesday.
He said the revenue from the mobile sector had been more than 1 per cent of the country's GDP for several years. The amount of taxes and fees in this sector was 4.5 percent of the government tax revenue. The contribution of taxes related to the mobile sector in the economy is more than four times its size. The sector's contribution to the economy is approximately 7 percent of GDP.
Mentioning the high corporate tax rate in this sector, SM Farhad said, "I am proposing to reduce the corporate tax rate of listed companies from 40 per cent to 25 per cent and the tax rate of unlisted companies from 45 per cent to 32 per cent."
The Secretary General said that despite the expansion of mobile coverage, almost half of the population of Bangladesh has not yet been able to connect to the mobile network. So one of the conditions for digital inclusion is the reform of the tax structure in the mobile sector. The government can easily accelerate GDP growth by lowering the tax rate. Focusing on the proposed issues will bring more benefits to mobile phone customers and a realistic reduction in tax rates in the telecom sector will encourage investors to invest more, the Amtob leader said.