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Surcharge on mobile phone triggers mixed reactions

FE Report | April 01, 2015 00:00:00


The proposed 1.0 per cent surcharge on mobile-phone uses has evoked mixed reactions among subscribers, operators and analysts, with some of them finding no fault with the move while others suggesting an alternative way of fundraising.           

The critics fear the surcharge might cast an adverse impact on the use of both cellular-phone and internet. The others see it as a positive initiative but suggested proper utilisation of the funds to be raised through the new measure.  

"Mobile-phone users are overburdened with different types of taxes and other charges. A user has to pay Tk 15 as value added tax (VAT) and other charges against Tk 100 top-up," Mizanur Rahman, a Dhaka University graduate.

If the proposal finally gets through, he added, it would add further Tk 1.0 to the tax pack on millions of people.

The cabinet Monday cleared the draft 'Development Surcharge and Levy (Imposition and Realisation) Act 2015' to impose a 1.0 per cent additional levy on the cell-phone use with the aim of raising funds to be spent on education and health sectors.

According to the guidelines, the surcharge will be applicable to the total amount of the mobile-phone charge of the users and the collected money will be spent on education and healthcare.

Asked about the surcharge, Jannatul Ferdows Shurovi, a private-sector service-holder, said donating 1.0 per cent money through the mobile-phone use to government treasury couldn't be a big factor, but the government must ensure the utilisation of the money in a transparent manner.

"Instead of imposing extra toll on everybody, the authorities could slap it on those who spend higher amount on cell-phone," said Protiti Shahid, who is in government service.

She suggested imposition of such auxiliary levy on those who use at least Tk 200-300 per month.

According to Bangladesh Telecommunications Regulatory Commission (BTRC), the number of country's active cell-phone users crossed 122.66 million until February last thanks to government's proactive policy support.

Industry-insiders said the added tax might hinder the regular growth of the telecom sector, which could be a major driver for the country to graduate from the least-developed status.

"The move comes in contrast to the government's policy of making the nation digitised," former president of Bangladesh Computer

Somity (BCS) Mostafa Zabbar said.

He rather suggested that if the government increased internet penetration, it would help generate more funds.

"It is narrow outlook of the government to gather money," said the expert in what is called knowledge economy.

In his view, the government could achieve 1.0 per cent growth of its GDP by increasing 10 per cent internet penetration in the country.    

Association of Mobile Telecom of Bangladesh (AMTOB) Secretary-General TIM Nurul Kabir told the FE that such step would affect the existing pace of growth of the sector as it has already been overburdened with overhead taxes.

"Presently, some 55 per cent of the earned money of the telecom sector goes to government exchequer," the industry leader said, adding that Bangladesh's telecom is one of highest tax-paying sectors in the world.

Mr Kabir said it would also negatively affect the internet use as nearly 94 per cent of the country's web-users use mobile network for getting internet services.

According to the telecom regulator, presently some 43.42 million people use internet in the country, as of February last.

    khairulislamdu@gmail.com

 


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