Mobile operators seek tax relief to boost digitisation

Representatives of the Association of Mobile Telecom Operators of Bangladesh (AMTOB) met with the National Board of Revenue (NBR) today (5 March) 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 digitization 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 highlighted several concerns

Double Taxation: AMTOB seeks to eliminate situations where companies face double taxation due to missing paperwork from suppliers.

Tax Exemptions for Government Organisations: AMTOB proposes clarifying tax return filing requirements for government entities like Bangladesh Railway and the Election Commission.

Corporate Tax Rates: AMTOB argues that the current 40–45 per cent corporate tax rate for mobile operators is significantly higher than the 20-27.5 per cent rate for other companies. They propose bringing mobile operators under the standard tax structure.

Minimum Tax Adjustments: AMTOB suggests allowing mobile operators to adjust any unutilised minimum tax towards future tax liabilities.

VAT on SIM Cards: AMTOB proposes removing the 200 Taka VAT charged on all SIM deliveries, including e-SIMs.

VAT on Government Regulatory Organisations: AMTOB seeks clarification on VAT applicability for government regulatory bodies.

Harmonised HS Coding: AMTOB recommends consistent application of the HS coding system for telecom equipment and software to streamline import procedures.

AMTOB believes these changes will foster a more supportive environment for the mobile industry, leading to increased investment, improved network infrastructure, and ultimately, accelerated national digitization. The NBR is expected to review the proposals and respond in due course.