Mobile-phone operators on Monday demanded reduction of corporate tax and withdrawal of SIM (subscriber's identity module) tax in the budget for the next fiscal year (FY), 2015-2016, to facilitate growth of the country's telecom sector.
At a pre-budget discussion with the National Board of Revenue (NBR), the Association of Mobile Telecom Operators of Bangladesh (AMTOB) demanded for withdrawal of 15 per cent VAT on internet uses and internet modem for expansion of mobile internet in the country.
"The government should reduce the corporate tax to 30 per cent from the existing 40 per cent for the companies listed in the capital market and to 35 per cent from current 45 per cent for the non-listed companies to eliminate discrimination in taxation with other sectors," Chief Operating Officer of Robi Mahtab Uddin said while presenting AMTOB's proposals.
The rate of corporate tax is higher in Bangladesh compared with those of some neighbouring and Asian countries, he mentioned.
He also said the existing SIM tax of Tk 300 should be eliminated, so that operators could provide SIM to subscribers at lower rates for increasing the rate of mobile penetration in the country.
Removal of the SIM tax will lead to 12 per cent increase in the mobile penetration, which is now 76 per cent, AMTOB claimed.
Foreign investors are also losing attraction in investment in the sector due to the 'discriminatory' taxation imposed on the sector, he added.
AMTOB also sought 10 per cent tax rebate for paying more than 10 per cent dividend and 10 per cent tax rebate for uploading more than 10 per cent share in the year of listing in the stock exchange.
AMTOB secretary general TIM Nurul Kabir said the government should review the tax policy for the telecom sector, considering its contribution to public exchequer and national economic growth.
NBR member Farid Uddin said the revenue board would examine the proposals objectively for inclusion in the budget.
Meanwhile, ceramic manufacturers in a separate meeting on the day urged NBR to withdraw the 15 per cent supplementary duty (SD) on locally-manufactured ceramic tiles and increase SD on imported finished goods to help protect the domestic industry, so that it can grow further.
At a pre-budget meeting with the revenue board, Bangladesh Ceramic Wares Manufacturers Association (BCWMA) said the domestic industry is losing competitiveness for 'uneven' competition with the imported substandard and cheap products.
BCWMA president Sirajul Islam Molla said once import-dependent ceramic sector has now turned into an export-oriented sector after meeting almost 70 per cent of the domestic demand.
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