BSS
  09 Mar 2022, 19:18

AMTOB proposes making corporate tax at 25pc

DHAKA, March 9, 2022 (BSS) - 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 for 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 for withdrawing or rationalizing minimum 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 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 for 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 in 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 take 
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 
for supplying band rolls for bidi as arrear like for the cigarettes.

Bangladesh Beverage Manufacturers Association President M Harunur Rashid 
proposed for 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 for reducing the supplementary 
duty on carbonated beverage at 15 percent from the existing level of 25 
percent.