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Telcos seek elimination of SIM tax

Bangladdeshi telecom operators seek elimination of SIM tax on both new connection and SIM replacement, and withdrawal of VAT and other fees on internet use to boost telecommunication services in the country.
At a pre-budget discussion with National Board of Revenue held at the NBR headquarters in Dhaka on Sunday, Association of Mobile Telecom Operators of Bangladesh also demanded imposition of 10 per cent of total disputed VAT as appeal fee only once instead of current provision of payment of 10 per cent of disputed amount as appeal fee at every stage of appeal process.

It is not rational to pay 30 per cent of disputed VAT as fee for filing appeal at three forums — commissioner (appeal), appellate tribunal and High Court, it observed.
The association said a subscriber is now required to pay Tk 100 in total for new SIM connection or replacement of old SIM and RUIM.

NBR should withdraw the tax on SIMs and RUIMs connection and replacement and on the upcoming virtual SIMs to facilitate more people to get SIM cards at cheaper cost, it suggested. The waiver would also increase mobile penetration in the country, it added.

Telecom operators also demanded clear guidelines on VAT registration of government agencies and regulatory bodies for VATable services as the service receivers would be deprived of taking input tax credit in absence of VAT registration of the service providing agencies.

They sought withdrawal of VAT, supplementary duty and surcharge which now stand at 11.25 per cent in total on mobile internet usage. Exemption of VAT on internet would make it affordable to mass people, they claimed.

AMTOB also demanded amortisation facility for all intangible assets as mobile operators now need to use so many intangible assets due to development of information technology.

Currently, NBR allows amortisation facility only for a few intangible assets, it said. It also sought elimination of minimum tax at the rate of 0.75 per cent for the sector saying that the provision of minimum tax was against the spirit of income tax as tax was payable on income, not on revenue.

The association also said that NBR should scrap the bank account freezing power by assistant commissioners and VAT officials above the rank. It demanded that the revenue board empower only commissioners for the job.

Existing provision empowering assistant commissioners and officials above the rank creates a potential threat of misuse of power creating extra hassle for taxpayers, it claimed. Robi regulatory affairs head Shahed Alam placed the AMTOB’s budget proposals at the meeting presided over by NBR chairman Md Mosharraf Hossain Bhuiyan.

Robi chief executive officer Mahtab Uddin Ahmed, acting Banglalink CEO and chief technology officer Pierre Boutros Obeid, Banglalink chief corporate and regulatory affairs officer Taimur Rahman, Grameenphone deputy chief financial officer Mustafa Alim Aolad, Teletalk deputy general manager Md Saifur Rahman Khan and AMTOB secretary general SM Farhad were present, among others, at the meeting.



Source: http://www.newagebd.net/article/70557/telcos-demand-elimination-of-sim-tax

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