Mobile operators demand cuts in corporate tax

Mobile operators yesterday urged the government to reduce corporate tax by 10 percentage points to 30 percent for listed and 35 percent for non-listed operators.
The corporate tax rate for general listed companies is 27.5 percent and for the non-listed ones 37.5 percent.
Association of Mobile Telecom Operators of Bangladesh organised a press briefing at Sonargaon Hotel in Dhaka to share the operators' budget proposals.
Mahtab Uddin Ahmed, chief operating officer of Robi, said Bangladesh has the highest corporate tax levels for the mobile sector; it is 35 percent in Pakistan and Sri Lanka, 33 percent in India, 30 percent in Thailand and 25 percent in China.
In a global comparison, Turkey has the worst tax regime, while Bangladesh has the second worst.
The mobile operators also urged the government to eliminate the Tk 300 SIM tax, which was supposed to be paid by customers but is paid by the operators.
If the SIM taxes are scrapped, it will boost mobile connectivity among people in the middle and lower income groups, said TIM Nurul Kabir, secretary general of AMTOB.

For every 10 percent hike in mobile penetration, the country's gross domestic product is expected to grow 1 percent.
The operators have also requested the government to harmonise the customs duty on telecom equipment import as different taxes are imposed on different equipment.
The AMTOB urged the government to exempt taxes on internet modem imports and the 15 percent valued added tax on mobile financial services.
For every Tk 100 the mobile operators earn as revenue, Tk 55 goes to the state coffer.
In addition, for every Tk 100 that comes to Bangladesh as foreign direct investment, the mobile operators account for Tk 62. The sector has so far invested Tk 71,870 crore in Bangladesh since 1997.
Representatives from all mobile operators were present at the press conference.