AMTOB seeks SIM tax cut, minimum tax withdrawn

The Association of Mobile Operators of Bangladesh has asked for elimination of minimum turnover tax and rationalisation of corporate income tax in line with the regional countries in the national budget for fiscal year 2020-2021.

As per the GSMA’s calculation, MNO’s contribution to the GDP in Bangladesh is currently 7 percent which may significantly increase with proper tax policy reform, the association said in a budget proposal placed recently to the National Board of Revenue (NBR) on Thursday.

“Since the sector has already been going through multiple issues regarding taxation, it is time to find solutions to them in encouraging the industry to add more value to the nation in the coming days,” said AMTOB President Mahtab Uddin Ahmed.

The association asked the NBR to consider lifting the current tax of Tk 200 per SIM, saying it is a major barrier for MNOs to take the service to the lower-income people.

It also called for considering rationalisation of corporate income tax saying the current corporate tax for the mobile industry is 45 percent in Bangladesh, which is 22 percent in India, 30 percent in Pakistan and Nepal, 28 percent in Sri Lanka, and 20 percent in Afghanistan.

AMTOB also sought rationalisation of the corporate tax to 30 percent, the same rate as the standard for other companies in Bangladesh.