Govt urged to withdraw tax on SIM card

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FE Report
Mobile telecom operators have urged the government to withdraw tax on SIM (Subscriber Identity Module) card and fix Tk 100 as tax for import of each mobile set from the next fiscal in a bid to accelerate growth of the telecom sector.
They have made the proposals for incorporation in the next fiscal budget in a pre-budget meeting with the National Board of Revenue (NBR). NBR chairman Dr. Nasiruddin Ahmed chaired the meeting held with computer, ICT and telecommunication sector businesses in the city Sunday.
In the current fiscal budget the government has levied 25 per cent customs duty on ad valorem basis instead of flat-rate duty of Tk 300 for import of each mobile set.
Stakeholders of the sector have also proposed to waive 5.0 per cent duty on import of computer to familiarise its use.
Bangladesh Computer Samity President Mostafa Jabbar, Association of Mobile Telecom operators Bangladesh (AMTOB) president Zakiul Islam, ISP association of Bangladesh president Akhtaruzzaman Monju, Grameenphone representative Enayat Kabir, Warid telecom general manager (government and operators relations) Ashraful H Chowdhury, CityCell representative Lutfor Hadi attended the meeting.
Mostafa Jabbar has proposed to withdraw tax and mandatory pre-shipment inspection (PSI) system on import of computers.
"The government should waive all duty-taxes on import of computer to materialise its plan to build digital Bangladesh," he said.
He also urged to clarify VAT rules on the use of internet in educational institutes.
AMTOB president Zakiul Islam has proposed to withdraw tax on SIM card saying that mobile phone is the main device of communication in the rural and remote areas.
The government should ensure its availability by withdrawing SIM tax, he said.
Islam also proposed to reduce import duty on capital machinery of telecom sector and withdraw 15 per cent VAT on rented space.
Grameenphone representative Enayet Kabir said consumers' are paying the VAT, Tk 800 for each SIM, imposed on telecom sector, which is a heavy burden on them.