NBR wants mobile cos to pay Tk 2.69b VAT arrears

Government's revenue authority asked the mobile operators to pay forthwith Tk 2.69 billion in VAT arrears against 2G licence spectrum charge trapped in complexities.
Officials said the Value Added Tax (VAT) wing of the National Board of Revenue (NBR) pressed the claim now that complexities over releasing the long-pending tax are settled.
The Large Taxpayers Unit (LTU) under the VAT wing of the NBR in a recent meeting asked the four cell- phone operators to pay the arrears against the third installment of 2G licence spectrum charge without further delay.
The VAT remained pending since August 2013.  
Grameenphone Ltd, Banglalink Digital Communications Ltd and Robi Axiata and City Cell owe the exchequer the amount on account of 15 per cent VAT deducted at source.
Representatives of the Bangladesh Telecommunication Regulatory Commission (BTRC) and the phone companies attended the meeting at the LTU with its commissioner presiding.   
LTU officials said there were disputes over payment of last installment of spectrum charge for 2G licence as the operators demanded a provision under which they could enjoy rebate on the paid VAT.
In the meeting, they agreed that the BTRC would issue VAT 12 Kha form through which cell-phone operators can claim rebate on the paid tax.
At the meeting, representatives of telecom-giant Grameenphone said the company was ready to pay its outstanding VAT on spectrum charge worth Tk1.06 billion if BTRC gave the VAT 12 Kha form.  
The LTU will send a letter to the BTRC by authorizing it to issue the form.
The issue remained pending as the BTRC had no authority to issue the VAT-rebate form to the phone operators.
However, talking to the FE, some insiders in the mobile-phone industry said the VAT-payment issue on spectrum charge still dragged on.   
An LTU official said, "The country's mobile-phone operators have blocked a significant amount of VAT for long filing cases in the courts." The matter of unpaid revenue could be resolved through Alternative Dispute Resolution (ADR) where both parties can discuss the issue, he added.
Demand for some Tk 25.71 billion of the VAT unit also remained stuck since 2015, waiting for a decision of the appellate tribunal. Last year, the LTU demanded the VAT as SIM-replacement tax from Grameenphone, Banglalink, Robi and Airtel.
The phone companies lodged appeal by depositing 10 per cent of the VAT worth Tk 1.63 billion.
As per final demand from the telecom operators, Grameenphone has to pay Tk 12.98 billion, Banglalink Tk 6.13 billion, Robi Tk 5.93 billion and Airtell Tk 659 million.
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