Mobile operators demand VAT waiver

Country`s cellular phone operators at a meeting with the National Board of Revenue (NBR) have demanded waiver of Value Added Tax (VAT) on mobile financial service in order to make it popular and affordable to rural people.

The operators also made proposal of withdrawing tax on SIM card as they said tax remains one of the major hindrances to ensure growth of mobile penetration.

"The elimination of SIM tax will enable mobile operators to contribute more towards government exchequer," they think.  

Withdrawal of SIM tax which they have been demanding for the last couple of years. They claim if SIM tax becomes zero by 2015 tele-density will go up to 85 per cent from current 72 per cent.

Besides, VAT exemption on modem at all stages, amortization of license fee, uniform corporate tax rate for telcos were also their demand.

The operators have placed the proposals before the National Board of Revenue on Thursday. In response of the operators, NBR chairman Golam Rahman said the NBR will consider their proposals.  

Chief executive officer at Robi Supun Weerasinghe, Chief Corporate Affairs Officer at GP Mahmud Hossain and Zakiul Islam at Banglalink led their respective teams in the meeting.

Association of Mobile Telecom Operators of Bangladesh (AMTOB) general secretary TIM Nurul Kabir who was present in the meeting said the government should consider the VAT exemption on internet service to reach its goal of making the country digital one by 2021.

Presently the operators have to pay four per cent VAT at import stage, four per cent at supply, and the 15 per cent at the selling stage.