Taxes, fees and charges impede telecom sector's growth

Industry stakeholders at a roundtable on Sunday said various taxes, fees, and charges pose a huge burden on the country's telecom sector, hindering its growth.
Around Tk 98 out of every Tk 100 spent by a subscriber goes towards various taxes, fees, and charges imposed by different government bodies, including the National Board of Revenue (NBR) and the Bangladesh Telecommunication Regulatory Commission (BTRC), they said.
They highlighted that the tax rates applied to the mobile sector are significantly higher than those in other countries in the APAC region.
The Telecom Reporters' Network, Bangladesh (TRNB) organised the roundtable titled 'Telecom Taxation for Smart Bangladesh' at a city hotel.
In the keynote paper, the Association of Mobile Telecom Operators of Bangladesh (AMTOB) said the mobile sector's contribution to the government revenue accounts for 5 per cent, which is five times its share in the economy (1 per cent), making the Bangladesh mobile tax regime as the most imbalanced among the countries.
Speaking as the chief guest, State Minister for Posts, Telecommunications, and Information Technology Zunaid Ahmed Palak voiced his discontent regarding the limited reach of smartphones within the country.
He stressed the need for the NBR to undergo a smart transformation in anticipation of the telecom sector's potential contribution to the nation's GDP.
Without implementing an intelligent taxation policy, the envisioned growth of the telecom sector would face obstacles, he said, emphasizing the need for its development into a smart telecom sector.
He pledged to address long-standing issues, including the PSR (Prescribed Specific Rate), in the telecom sector in consultation with the NBR Chairman, BTRC Chairman, and Finance Minister, after this Eid.
Palak conveyed his support for rational corporate tax assessment and comparative analysis, vowing to advocate for the telecom sector's interests in terms of return on investment and incentives.
BTRC Chairman Mohiuddin Ahmed said that if there is a change in the tax structure, everyone involved in this ecosystem should be involved.
He emphasized that necessary reforms must be implemented. “The total system of the telecom sector should be reviewed and simplified," he said.
Bangladesh Satellite Company Limited Chairman Dr. Shahjahan Mahmud said, "Considering the interest of the country, it is appropriate to review the tax structure in the zero-sum policy. NBR should consider the telecom sector with transparency."
AMTOB General Secretary Lt. Colonel Mohammad Zulfiqar (Retd) gave a presentation on the contribution of the operators to the national economy and building a ‘Smart Bangladesh’.
Technology expert Suman Ahmed Sabir said, "Intelligent smart taxation is required with multi-dimensional and long-term vision".
Telecom expert TIM Nurul Kabir said that foreign investment in the country is now decreasing due to the uncertainty of NBR's decision.
Acting CEO of Banglalink Taimur Rahman said that there is practically no distance between ICT and Telecom.
“Instead of collecting tax from the same place every year, the scope of tax should be increased," he said.
Senior Director of Grameenphone Hossain Sadat said ‘Smart Bangladesh’ can move forward if a supporting policy is adopted with the opinions of stakeholders.
Robi's Chief Corporate Affairs Officer Shahed Alam said taxes are necessary for national development, but in this case, there should not be any tax to act as a hindrance at the user level.
The event was chaired by TRNB President Rashed Mehdi, with General Secretary SM Masuduzzaman Robin also in attendance.

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