Don't tax SIM upgrades

A consumer platform yesterday demanded the National Board of Revenue refrain from charging Tk 100 as VAT on replacement of SIMs with 4G-enabled ones to help them access the high-speed internet service.

The Bangladesh Mobile Phone Consumer Association formed a human-chain in front of the National Press Club in Dhaka to press home their demand. 

It said it was incomprehensible why the VAT was imposed on customers availing a technology upgrade.

Grameenphone is charging Tk 110 for the replacement while Robi and Banglalink Tk 100.

However, there is no charge for subscribers using Grameenphone's Star, Robi's Dhonnobad and Banglalink's Priyojon packages, said the demonstrators.

On charging more than Tk 100 in VAT, market leader GP said 1.5 gigabyte internet data is additionally being provided in the package.

The government has fixed only Tk 30 as charge for switching between mobile operators (mobile number portability), said Mohiuddin Ahmed, president of the association.

The association said the VAT was a barrier to flourishing internet usage and the country's digitalisation. So, the NBR should give up the plan to collect a few hundred crores taka from the charge.

The group on February 25 presented a memorandum containing their demands to the NBR.

The government on February 19 gave approval to four mobile phone operators, including state-run Teletalk to roll out 4G services. Since then, the top three operators have launched the service in some areas and are gradually widening the coverage.

The association also sought government intervention on internet usage costs.

It said the government has brought down the selling price of per megabit per second bandwidth from Tk 72,000 to Tk 600 in phases. But the operators are charging the customers almost the same like they did in case of the previous rate.

"We request the government to adjust the internet price and save customers," Ahmed added.