Telcos link SIM tax dispute

The country's mobile phone operators have demanded 'final and satisfactory settlement' of the SIM replacement tax claim issue before holding the spectrum auction slated for April 30 this year.
The telephony firms also sought Finance Minister AMA Muhith's intervention to quicken the settlement of the long pending tax dispute involving Tk 30.12 billion.
"If resolved, this will pave the way for our participation in the upcoming spectrum auction process," said a letter sent to the ministry of finance (MoF) recently.  
The operators in the letter also sought a convenient time from the minister to discuss the ways for resolving the issue.
The letter was signed by the CEOs (chief executive officer) of Grameenphone Ltd, Robi Axiata Ltd, Banglalink Digital Communication Ltd and Airtel Bangladesh Ltd.
Earlier, the National Board of Revenue (NBR), Bangladesh Telecommunications Regulatory Commission (BTRC) and the ministry of finance (MoF) made efforts to find an amicable solution to the issue, but failed.
In the letter, the operators said it is unfortunate that subsequent developments in terms of implementing the government's commitments, decisions and conclusions have fallen far short of reasonable expectations.
"The situation has become more critical as we have to garner support of our shareholders for the forthcoming spectrum auction in spite of the long pending SIM issue remaining open despite the commitment by the government during 3G auction," the letter said.
It noted that while they were in the midst of discussion to participate in the spectrum auction of 1800MHz and 2100MHz, LTU (large tax unit) has moved to vacate the stay order without any attempt to resolve the matter amicably.
In February 2012, NBR filed O-NiyomMamla (irregularity complaint) against four operators. In response to irregularity complaint, the operators filed a writ petition with the High Court (HC).
"Although we are keen to participate in the forthcoming auction, recent development and uncertainties related to SIM replacement dispute has forced our shareholders to reconsider the investment decision, which was agreed to be resolved based on the interim report published prior to 3G auction in 2013," the letter reads.
Earlier, the major parent bodies of the local telephony firms in another letter expressed their 'inability' to ask their local mobile operators for participation in the upcoming auction unless the government settles a number of regulatory affairs.
Their demands included improvement of the existing investment framework, positive revision of the telecommunication policy and settlement of the SIM tax dispute.
BTRC has already completed groundwork to hold the mega auction for 15MHz and 10.6MHz in the respective slot of 2100MHz and 1800 MHz. According to the guidelines, the government has fixed US$ 30 million as the base price for per mega hertz in 1800 band and $ 22 million for per mega hertz in 2100 band.
When contracted, a senior BTRC official told the FE that the Commission had already initiated talks with the mobile-phone operators regarding the SIM-tax dispute.
    [email protected]