AMTOB Applauds Proposed Budget
The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has “warmly welcomed” the government’s decision to reduce the minimum corporate tax rate for the mobile telecom sector from 2% to 1.5% in the proposed national budget for FY2025–26.
In a budget reaction sent to the media on Wednesday, June 4, AMTOB also thanked the caretaker government for resolving the long-standing complications surrounding the submission of the Proof of Submission of Return (PSR) documents for the Bangladesh Telecommunication Regulatory Commission (BTRC) and other non-revenue-generating entities. The association expressed further optimism that the upcoming budget would lead to swift resolution of similar unresolved issues with other government agencies.
The statement read, “Over the past decade, the consistent increase in taxation in the mobile telecom sector has made it increasingly difficult for operators to achieve a reasonable return on investment. Moreover, the imposition of a 10% supplementary duty on OTT platforms may impact the affordability and accessibility of digital content — a potential barrier to building a knowledge-based society. We had recommended several key measures including a reduction in corporate tax rates (for both listed and non-listed operators), elimination of SIM tax and SIM replacement tax, and the withdrawal of the 1% surcharge.”
It further added, “We were also expecting a reduction in taxes on mobile handsets to boost smartphone adoption and expand the data sector. However, the proposed budget does not indicate any such initiative or related steps. Although the reduction of withholding tax on internet services from 10% to 5% is a positive move, it applies only to business-to-business (B2B) transactions. As a result, it will not have any direct impact on the internet costs borne by general consumers.”
AMTOB concluded by saying, “We appreciate these recent changes and remain hopeful that the government will consider our remaining proposals to further unlock the country’s full digital potential.”
