AMTOB Proposes Tax Cuts and VAT Removal for Mobile Sector
The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has submitted 23 proposals to the National Board of Revenue (NBR), including the withdrawal of Value Added Tax (VAT) on SIM and e-SIM supplies and the removal of the 50% additional tax imposed for failure to submit tax return certificates.
These proposals were presented during a pre-budget discussion at the NBR headquarters in Agargaon, Dhaka, ahead of the 2025-26 fiscal year budget.
In a detailed press statement issued on Wednesday, AMTOB Secretary General, retired Lieutenant Colonel Mohammad Zulfikar, said, "Despite being an essential service, the mobile industry in Bangladesh is subjected to sector-specific taxation, making us the highest taxpayers globally. Additionally, the government has been increasing taxes on this sector almost every year, which has had an adverse impact on consumers."
He further stated, "Due to rising tax rates, the number of mobile and internet subscribers has been declining significantly since mid-last year, and this trend continues."
Expressing optimism, he said, "We hope the government will consider our proposals and bring taxation in this sector down to a reasonable level."
Key Proposals by AMTOB
1. VAT Removal on SIM and e-SIM Supplies
AMTOB argued that removing VAT on SIM card supply would positively impact mobile phone expansion in rural areas and contribute to the government's goal of digitalization.
2. Withdrawal of Additional 50% Tax for Tax Return Non-Submission
AMTOB pointed out that the existing provision under the Income Tax Act, which imposes a 50% additional tax for failure to submit tax return certificates, leads to double taxation on the same cost, which is contrary to the fundamental principles of income tax laws. The organization urged the government to abolish this provision.
3. Clarification on Tax Exemptions for Government Agencies
The association requested clear guidelines on whether government agencies such as the Bangladesh Telecommunication Regulatory Commission (BTRC), Bangladesh Railway, and the Election Commission—which charge fees for their services—are required to submit tax returns.
4. Reducing Corporate Tax for Mobile Operators
Currently, listed mobile operators pay a 40% corporate tax, while non-listed operators pay 45%. In contrast, the general corporate tax rate is 27.5% for non-listed companies and 20% for listed companies.
AMTOB stated, "We propose integrating mobile operators into the general corporate tax structure and reducing the tax rate for listed companies by 10%."
5. Removal of Supplementary Duty and Surcharge on the Mobile Sector
The association highlighted that the mobile sector is subject to a 20% supplementary duty and a 1% surcharge, which are typically imposed on non-essential or luxury goods and services. AMTOB demanded complete withdrawal of these taxes.
6. Adjustment of Minimum Tax for Loss-Making Companies
AMTOB emphasized that even loss-making telecom companies are forced to pay a minimum tax. Although tax laws allow businesses to adjust losses from previous years, telecom operators still have to pay a minimum tax.
The association proposed, "To ensure both government revenue and fair evaluation, there should be an opportunity to adjust minimum tax payments."
7. VAT Exemption for Government Regulatory Agencies
AMTOB noted that government agencies and regulatory bodies are not consistently following VAT regulations, causing operational challenges for mobile operators. The association recommended clear guidelines and the removal of VAT on payments to regulatory agencies.
8. Dedicated HS Coding System for Telecom Equipment
Due to the lack of a separate Harmonized System (HS) coding system for telecom equipment, mobile operators face difficulties in antenna design and customization solutions. AMTOB recommended introducing a separate HS code to streamline these processes.
The association hopes that the government will consider these recommendations and implement tax policies that will support the sustainable growth of the telecom sector in Bangladesh.
