Mobile usage costs rise for 'irrational' SD, surcharge

Telecom-industry leaders said on Wednesday that they could reduce mobile expenditure of customers significantly had the government cut what they call 'irrational' 20-percent supplementary duty and 01-percent surcharge imposed on the usages.
They made the observation while speaking at a post-budget Press Meet at the Association of Mobile Telecom Operators of Bangladesh (AMTOB) secretariat at Banani in the capital.
They alleged that the government opted for easy tax by imposing 05-percent additional supplementary duty and Tk 100 SIM tax instead of expanding tax net which appears to be a difficult task for the NBR.
They said the government would not achieve the targeted revenue from telecom services as the new tax is expected to negatively impact mobile consumers and the telecommunications industry.
Addressing the press conference, Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink, said, "The imposition of additional supplementary duties and SIM taxes will adversely impact the telecom industry and our customers."
As the industry faces a period of degrowth, these new taxes add a financial burden that could hinder overall GDP growth and increase costs for customers who rely on affordable telecom services for their daily needs, he added.
Mr Rahman also said a significant portion of the digital economy depends on the connectivity provided by the telecom sector and its infrastructure.
Speaking on the occasion, Shahed Alam, chief corporate and regulatory affairs officer of Robi Axiata, said there may be a situation come when mobile operators will introduce recharge excluding tax, users will see that nearly Tk 39 from Tk 100 recharge is consumer tax.
"In that case, they have to recharge Tk 139, including tax for Tk 100 usage," he said.
In his address, Hans Martin Henrichsen, chief corporate affairs officer of Grameenphone, said additional taxes on SIM cards could hinder efforts to achieve a 'Smart Bangladesh' through mobile penetration.
He argued the government curbing spending in this area would ultimately benefit everyone by fostering growth.
AMTOB Secretary General Mohammad Zulfikar explained that the Special Regulatory Order (SRO) was issued before the budget, with immediate implementation required following the budget proposal in Parliament.
However, he expressed hope that the budget would be more long-term oriented than earning easy revenue.
He said the reduction in taxes will ultimately help the government earn more revenue from the sector.
The industry leaders also said the new imposition of taxes, resulting in the highest mobile service tax rates in South Asia, combined with high inflation, could further hinder industry growth and innovation.
Despite requesting the government through various channels including the NBR, to bring the mobile sector taxes to a rational state, the government did not listen and imposed new levies. According to data from the Bangladesh Telecommunication Regulatory Commission (BTRC), over 120 million subscribers out of 192.2 million SIM card holders in the country use the internet.

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