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Pre-budget discussion with NBR

Mobile operators seek tax relief to boost digitisation

UNB, Dhaka

Published: 06 Mar 2024, 12:21 AM

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Representatives of the Association of Mobile Telecom Operators of Bangladesh (AMTOB) met with the National Board of Revenue (NBR) on Tuesday to discuss tax policies impacting the telecommunications sector.
AMTOB presented 21 proposals aimed at reducing the tax burden on mobile operators, arguing that the current structure hinders the industry's growth and, consequently, the country's digitisation efforts.
"The mobile industry is the backbone of internet access in Bangladesh," stated AMTOB Secretary General Lt Col (retd) Mohammad Zulfikar .  
"The entire digitisation process relies heavily on its infrastructure. Every sector, from banking and e-commerce to education and healthcare, utilises mobile services."
AMTOB highlights several concerns
The AMTOB sought to eliminate situations where companies face double taxation due to missing paperwork from suppliers.
It proposed clarifying tax return filing requirements for government entities like Bangladesh Railway and the Election Commission.
It also argued that the current 40-45% corporate tax rate for mobile operators is significantly higher than the 20-27.5% rate for other companies. The AMTOB proposed bringing mobile operators under the standard tax structure.
It suggested allowing mobile operators to adjust any unutilised minimum tax towards future tax liabilities, and removing the Tk200 VAT charged on all SIM deliveries, including e-SIMs.
The AMTOB also sought clarification on VAT applicability for government regulatory bodies, and recommended consistent application of the HS coding system for telecom equipment and software to streamline import procedures.
The NBR is expected to review the proposals and respond in due course.

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