Govt urged to formulate flexible tax structure on mobile phones
FE Report | Wednesday, 4 June 2008
The government ought to formulate a more favourable and flexible tax structure on mobile phone devices in the next budget to ensure a better penetration of mobile phones among the lower income groups of the country.
The call was made by Prem Chand, Managing Director of Nokia EA Limited, on the eve of the second anniversary of Nokia in Bangladesh at a city hotel Tuesday.
"The tax on a mobile phone set is now Tk. 300 and it is an obstacle to increase its affordability among the lower income group of customers," observed Prem Chand.
"On our part, we can work to minimise the cost of sourcing, manufacturing and supply processing, but the rest lies on the government to bring down the price of mobile handsets within the reach of the lower income people." he opined.
"Therefore, it is better if there is lower taxes imposed on cheaper handsets," he said.
"It does not mean that government thus would be deprived of revenue. Rather, a lower price of mobile phones would result in a further curbing of the share of grey market while making this technology more affordable to wider segment of the society," Prem Chand observed.
"Over the last 24 months of our journey in Bangladesh, we have achieved several milestones including the introduction of first Bengali user interface mobile phones as well as the launching of around 100 models in the country," said Nokia's Managing Director in Bangladesh.
"Most importantly, Nokia have been instrumental in curbing the share of grey market for mobile handsets in the country to 25 percent from 85 percent," he said, "which otherwise was depriving the customer of quality services and the government of huge amount of revenue each year".
"At the same time, a total of 28 customer care centres, four Nokia stores, five premium partner outlets and 6500 retail outlet coverage have been set up around the country to ensure complete customer care and service," Prem Chand informed.
"In the near future, Nokia is looking to introduce its umbrella concept for internet services 'Ovi' in Bangladeshi market but certain technological prerequisites like 3G are to be arranged prior to that," Prem Chand said.
He pointed at certain technological hindrances like the lack of the accessibility for high speed internet and data collections as a major obstruction for the enhancement of mobile phone and telecommunication services in the country.
The world's leading brand for mobile phone devices; Nokia is claimed to be owned by around 900 million people around the world. The brand also boasts to have produced an average of 1.5 million devices per day in the year 2007.
The call was made by Prem Chand, Managing Director of Nokia EA Limited, on the eve of the second anniversary of Nokia in Bangladesh at a city hotel Tuesday.
"The tax on a mobile phone set is now Tk. 300 and it is an obstacle to increase its affordability among the lower income group of customers," observed Prem Chand.
"On our part, we can work to minimise the cost of sourcing, manufacturing and supply processing, but the rest lies on the government to bring down the price of mobile handsets within the reach of the lower income people." he opined.
"Therefore, it is better if there is lower taxes imposed on cheaper handsets," he said.
"It does not mean that government thus would be deprived of revenue. Rather, a lower price of mobile phones would result in a further curbing of the share of grey market while making this technology more affordable to wider segment of the society," Prem Chand observed.
"Over the last 24 months of our journey in Bangladesh, we have achieved several milestones including the introduction of first Bengali user interface mobile phones as well as the launching of around 100 models in the country," said Nokia's Managing Director in Bangladesh.
"Most importantly, Nokia have been instrumental in curbing the share of grey market for mobile handsets in the country to 25 percent from 85 percent," he said, "which otherwise was depriving the customer of quality services and the government of huge amount of revenue each year".
"At the same time, a total of 28 customer care centres, four Nokia stores, five premium partner outlets and 6500 retail outlet coverage have been set up around the country to ensure complete customer care and service," Prem Chand informed.
"In the near future, Nokia is looking to introduce its umbrella concept for internet services 'Ovi' in Bangladeshi market but certain technological prerequisites like 3G are to be arranged prior to that," Prem Chand said.
He pointed at certain technological hindrances like the lack of the accessibility for high speed internet and data collections as a major obstruction for the enhancement of mobile phone and telecommunication services in the country.
The world's leading brand for mobile phone devices; Nokia is claimed to be owned by around 900 million people around the world. The brand also boasts to have produced an average of 1.5 million devices per day in the year 2007.