The Association of Mobile Telecom Operators of Bangladesh on Thursday sought a set of tax benefits in the next national budget for telecommunications sector saying that high tax burden was holding back the investors from new investment. At a pre-budget discussion with the National Board of Revenue, Robi Axiata Ltd chief operating officer Mahtab Uddin Ahmed, while placing budget proposal on behalf of the association, said foreign investors were losing attraction in investing in the sector.
Mahtab said Singtel, which holds 45 per cent share in Citycell, and NTT Docomo, 8 per cent shareholder in Robi, stopped making new investment while Warid Telecom sold out its share to Airtel due to rigid taxation regime.
Even no foreign investors came with investment for obtaining 3G licences, he said, adding that Bangladesh had huge potentials in the sector that needed huge investment.
Replying to the issue, NBR chairman Ghulam Hussain termed the above mentioned companies as small one in terms of investment. He said that big fish [large operators] in the sector were driving out small fish from the sector.
The AMTOB demanded for withdrawal of Tk 300 SIM tax, reduction of corporate tax and turnover tax, elimination of 15 per cent value-added tax on mobile financial services, withdrawal of minimum tax and reduction of duty on import of telecommunications equipments to 5 per cent from the existing highest 25 per cent.
It also sought withdrawal of VAT on internet modem at different stages.
Terming that the corporate tax rate is the highest in Bangladesh among all South Asian countries the telecommunications companies wanted a uniform corporate tax rate for the industry.
Currently, listed mobile operators are paying 40 per cent corporate tax while it is 45 per cent for the non-listed companies. The general listed companies are now paying 27.5 per cent tax while non-listed companies are paying 37.5 per cent corporate tax.
The NBR chairman said the proposals would be examined thoroughly considering its positive and negative sides from three points of views — industrial growth, consumers’ interest and revenue perspective.
NBR members Syed Aminul Karim, Jahangir Hossain, Robi chief executive officer Supun Weerasinghe, Airtel Bangladesh chief finance officer SK Mukhopadhyay, among others, spoke at the meeting.
-With New Age input
