AMTOB wants minimized and deducted corporate tax

While the time for the budget proposals approaches, the Association of Mobile Telecom Operators of Bangladesh (AMTOB) tries to pursue the National Board of Revenue (NBR) for the past few years with a similar kind of proposals. Apart from the points proposed in the last financial year, the percentage of how much tax reform will affect the national growth has also been presented this time. However, the demand for effective implementation of the dual taxation avoidance agreement has been added to it. The 16-point proposal emphasizes the need to withdraw or rationalize a minimum 2% turnover tax on non-profit operators. Added to this is the issue of bringing down the high corporate tax rate to a reasonable and tolerable level as always. At the pre-budget discussion held at the conference room of the National Board of Revenue in the capital's Segunbagicha on Wednesday (March 9), AMTOB Secretary General SM Farhad presented the rational proposals in a logical sequence. Apart from the AMTOB, the pre-budget discussion chaired by the NBR Chairman Abu Hena M. Rahmatul Munim was attended by the representatives of British American Tobacco Bangladesh (BATB), Biri Industry Owners Association and Bangladesh Beverage Manufacturers Association. In addition to the member of the NBR, Md. Masood Sadiq (Customs Policy), Zakia Sultana (VAT Policy) and Samsuddin Ahmed (Income Tax Policy) were present. Taking part in the discussion, the secretary general proposed to reduce the corporate tax rate of the companies listed on the stock exchange of mobile operators from 40% to 25% and the tax rate of unlisted companies from 45%to 32%. AMTOB's proposal called for the implementation of the Dual Taxation Avoidance Agreement (DTAA) and the rationalization of non-residents under section 56. Bangladesh and 33 other countries have the Double Taxation Evidence Agreement (DTAA), yet all non-resident service providers in Bangladesh who do not have a permanent office have to obtain a non-deduction certificate from the NBR. In addition, the current tax rate for some services under section 56 is up to 30%, which is very high. Furthermore, they demanded a realistic reduction in various tax rates, VAT exemptions too have been proposed for government regulators. Apart from this, the abolition of Tk 200 tax on mobile SIMs, reduction of supplementary tax on mobile data services to 5% and increase in VAT from 5% to 15% as standard tax rate was proposed by the Secretary General. Asking for the opportunity to withdraw VAT in case of 4G as well. Farhad said that according to a special order dated January 27 last year, VAT exemption has been given in the case of payment of 2G and 3G revenue in BTRC. So in the case of 4G too, he demanded this opportunity to continue. He further added, “In previous years, the revenue of the mobile sector was more than 1% of the country's GDP and the amount of taxes and fees paid by this sector was about 4.5% of the total government tax revenue. In other words, the contribution of taxes related to the mobile sector in the economy is more than 4 times its size. On the other hand, the contribution of this sector to the economy as a whole is about 7% of GDP. Despite the expansion of mobile coverage, almost half of the population of Bangladesh has not yet been able to connect to the mobile network. So one of the conditions for digital inclusion is the reform of the tax structure in the mobile sector. The government can easily accelerate GDP growth by lowering the tax rate. Focusing on the proposed issues will bring more benefits to mobile phone subscribers and will encourage investors to invest more if the tax rate in the telecom sector is reduced practically.”