Government's tax receipts from mobile-phone companies have dropped in the current fiscal year (FY) due mainly to a significant fall in sales of new SIM and replacements.
Officials said the National Board of Revenue (NBR) had collected Tk 387 million less value-added tax (VAT) from six mobile operators until October of the FY2016-17 compared to corresponding previous period.
In FY2015-16, the Large Taxpayers Unit (LTU) under the VAT wing of the NBR received Tk 37.17 billion from Grameenphone Ltd, Robi Axiata Bangladesh Ltd, Banglalink Digital Communications Ltd, Airtel Bangladesh Ltd, Pacific Telecom Bangladesh Ltd and Teletalk Bangladesh Ltd.
The amount collected during the period is 12 per cent of the aggregate VAT collection by the LTU. It is the third-largest revenue-earning sector for the unit.
In the current fiscal year (FY), the government has imposed 5.0 per cent Supplementary Duty (SD) on mobile services using SIM (subscriber identity module) and RUIM (removable user identity module) cards.
Excepting Pacific Telecom Bangladesh Ltd, new SIM connections and replacement of existing SIMs of the other five mobile operators dropped significantly in the first four months of the current fiscal year.
New SIM connections dropped by 37,67,514 while replacements dropped by 12,04,989.
Revenue collection from new SIM connections and SIM replacements dropped by Tk 497 million in the July-October period compared to that of the same period last year.
However, SD collection increased by Tk 329 million while VAT collection dropped by Tk 130 million in the four months.
Also, revenue collection faced a shortfall by Tk 387 million from call charge and other services in the period compared to that of the same period previous year.
The LTU in an analysis has found that the unit had received Tk 1.63 billion as VAT and SD at a rate of 10 per cent from three mobile operators in August last year when they lodged appeal in the court challenging a tax demand of the NBR.
Officials said the additional big chunk of revenue in FY 2015-16 triggered the difference between the revenue receipts during the two corresponding periods.
"The LTU has some disputed demands on revenue with the mobile-phone companies," said one official.
"The process of realising the large sums of stuck-up revenue could be settled through alternative dispute resolution (ADR)," he added.
doulot_akter@yahoo.com
