The rate at which the government collects money from the telecom sector in taxes and fees is more than double that of other countries in the world. In this case, the global average rate is 22 percent. Operators pay a 2 percent transaction tax on gross revenue, regardless of profit or loss, which is close to the 3 percent levied on harmful tobacco.
This is what the Amtob Secretary General Lt. Colonel (retd) Mohammad Zulfikar informed in a round table meeting on Sunday in a hotel in the capital city; Association of Mobile Telecom Operators of Bangladesh (AMTOB) and Telecom and Technology Reporters’ Network Bangladesh (TRNB) jointly organized the event.
Highlighting the overall situation of the telecom sector in the meeting, he said that if the mobile operators earn 100 taka from the customers, the government receives lone receives 54 taka for various taxes and fees.
In the presentation, he said, the presentation showed that the National Board of Revenue (NBR) charges 39 taka for every 100 taka of income of operators. BTRC charges Tk 15 for various fees including license and spectrum. Tk. 18 is received by various private service providers, including tower companies, which provide services in the telecommunication sector. Operators can retain Tk. 26 only.
AMTOB has highlighted the corporate tax rates of 11 countries—Singapore, Thailand, Cambodia, Indonesia, Malaysia, Philippines, Sri Lanka, Pakistan, Nepal, India and Bangladesh—and only Bangladesh has the highest corporate tax in the telecommunications sector. In case of listed telecommunication companies in Bangladesh, the rate is 40 percent. 45 percent in others.
In the presentation, it was shown that how much the tax has increased in the telecommunication sector year by year; it is also said that in the 2017-18 fiscal year, if the customer recharged the mobile phone by 100 taka, the tax would have been deducted from it by 21 taka 75 paisa. Now it goes for a little more than 33 taka.
State Minister for Posts, Telecommunications and Information Technology Zunaid Ahmed Palak was present as the chief guest, while the Chairman of BTRC Engineer Md. Mohiuddin Ahmed and former chairman and BSCL chairman Shahjahan Mahmud were also present.
Telecom expert Sumon Ahmed Sabir, FICCI Executive Director TIM Nurul Kabir, Grameen Phone CEO Yasir Azman, Robi Chief Corporate and Regulatory Officer Shahed Alam, Banglalink Acting CEO Taimur Rahman, TRNB President Rashed Mehdi and General Secretary Masuduzzaman Robin, officials of mobile operators. among others were also present
Amtob and telecom experts said at the seminar that the corporate tax in this sector is equal or close to that of tobacco companies despite being an essential service every moment. In such a context, the tax system of this sector is demanded by operator companies and AMTOB, which they expect to see the reflection in the budget of the upcoming financial year 2024-25.
