AMTOB Proposes Making Corporate Tax at 25PC

The Association of Mobile Telecom Operators of Bangladesh (AMTOB) today urged the government to make the corporate tax rate for the mobile operator companies at 25 percent in the upcoming national budget by slashing it 15 percent.

Secretary General of AMTOB Brigadier General (retd) SM Farhad made the proposal at a pre-budget meeting with the National Board of Revenue (NBR) held at the NBR Bhaban in the capital's Segunbagicha area.

Presided over by NBR Chairman Abu Hena Md Rahmatul Muneem, representatives from the British American Tobacco Bangladesh (BATB), Bidi Shilpa Malik Samity and Bangladesh Beverage Manufacturers Association took part in the meeting.

NBR members (customs policy) Md Masud Sadique, Zakia Sultana (VAT Policy), and Shamsuddin Ahmed (income tax policy) took part, among others, in the meeting.

AMTOB Secretary-General demanded reducing the corporate tax rate of the listed mobile operators at 25 percent from the existing 40 percent while that of the non-listed companies at 32 percent from the existing level of 45 percent.

He also demanded withdrawing or rationalizing a minimum of two percent turnover tax on non-profit operators side by side reducing the supplementary duty on data services at five percent alongside increasing the VAT at 15 percent as an ideal tax rate.

Referring to the VAT exemption on 2G and 3G services according to a notification from the BTRC, Farhad appealed for giving the same facility to 4G services.

Besides, the AMTOB also proposed repealing Taka 200 tax on SIM cards alongside some VAT exemption proposals at the regulatory bodies.

Taking part in the discussion, BATB managing director Shehzad Muneem requested the government to stop fake band rolls and fake cigarettes.

Urging the government not to impose any fresh tax on this tobacco sector, he said any new tax may increase the burden on the customers while foreign cigarettes may smuggle into the country.

BATB director Sheikh Shabab Ahmed was also present in the discussion.

In response, NBR Chairman said the government would rely on cigarettes for revenue generation as efforts would be there for controlling this sector through increasing the tax rate.

"But, it's quite often seen that the sector couldn't be controlled only through increasing VAT, rather there is a scope for smuggling. So, we make decisions every year regarding the tobacco companies with caution," he added.

Bangladesh Bidi Shilpa Malik Samity President Krishna Bijoy Dey demanded of the NBR to withdraw 10 percent advance income tax on Bidi. He also proposed supplying band rolls for bidi as arrear like for the cigarettes.

Bangladesh Beverage Manufacturers Association President M Harunur Rashid proposed withdrawing five percent supplementary duty on drinking water side by side reducing the overall tax rate on soft drinks at a rationale level from the existing 43.75 percent.

Besides, the industry leaders also demanded reducing the supplementary duty on carbonated beverages at 15 percent from the existing level of 25 percent.