The mobile phone companies have demanded withdrawal of 15 per cent value added tax on mobile financial services in the budget for 2014-15.
The Association of Mobile Telecom Operators of Bangladesh has recently submitted its budget proposal to the National Board of Revenue for consideration in the next budget which will be announced in June.
The AMTOB said removing the 15 per cent VAT from mobile financial services will foster the economic growth.
The AMTOB also demanded removing VAT on internet modem at different stages.
At present there is 4 per cent tax on import stage and supply stage each while at selling stage the VAT is 15 per cent for the internet modem.
The telcos also demanded that import duty for all telecom equipment, supported by no objection certificate of Bangladesh Telecommunication Regulatory Commission, should be supported by statutory regulatory order at the rate of 5 per cent.
‘At present, customs authority is arbitrarily segregating and re-classifying the
integral and essential parts of the telecommunications equipment like connection cable under HS Codes different from the imported telecommunications equipment,’ said the AMTOB proposal.
The AMTOB also demanded withdrawal of subscriber identification module or SIM tax which is now payable at Tk 300 for each SIM.
The telcos demanded reduction of corporate tax rate to 30 per cent from 40 per cent for listed mobile operator company and 35 per cent from 45 per cent for non-listed mobile operators.
-With New Age input
