The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has presented a total of 23 demands at a pre-budget discussion held at the National Board of Revenue (NBR).
According to the organization, the existing 20 percent supplementary duty and 1 percent surcharge on telecom services are creating an additional burden on consumers, hindering the expansion of digital connectivity. It has therefore called for the withdrawal of these taxes to make digital services more accessible to the general public.
AMTOB also noted that a VAT of Tk 300 is currently imposed on the supply and replacement of SIM and e-SIM cards, which particularly obstructs digital inclusion for low-income users. The organization has demanded the removal of this VAT.
The organization further pointed out that while VAT is imposed during spectrum allocation, operators are again required to pay VAT when providing voice and data services using the same spectrum. This has effectively created a situation of double taxation. AMTOB has therefore called for the withdrawal of VAT on spectrum.
In addition, AMTOB highlighted that the corporate tax rate for listed mobile operators in Bangladesh is 40 percent, while it is 45 percent for non-listed companies—figures that are higher compared to many other sectors and countries. It has urged that these tax rates be reduced to a rational level.
The organization has also demanded the withdrawal of the existing 10 percent supplementary duty on OTT platform services. MTob believes that reducing this duty would increase the popularity of such services and expand their usage from content creators to grassroots users.
According to AMTOB, simplifying and making the tax structure more tolerable in the telecommunications sector would boost investment, improve service quality, and accelerate the country’s digital transformation.
Ahead of the national budget for the 2026–27 fiscal year, AMTOB Secretary General Lieutenant Colonel Mohammad Zulfikar (Retd.) emphasized the need to reconsider the existing tax framework in the telecommunications sector. He stated that high tax rates, low income, and limited returns on investment have put the sector under significant challenges.
He added that mobile operators are required to deposit approximately 56 percent of their total revenue into the government treasury in the form of various taxes and VAT. In years when spectrum auctions are held, this burden increases further. As a result, revenue and profitability remain unsatisfactory compared to investment levels. At the same time, despite a large subscriber base due to relatively low prices for mobile voice and internet services, the average revenue per user (ARPU) remains below Tk 150, which is affecting the long-term sustainability of the operators.
DBTech/AAM/EK/OR
