Scrap turnover tax on non-profitable operators

The Association of Mobile Telecom Operators of Bangladesh (Amtob) urged the government to withdraw the turnover tax on non-profitable operators and slash corporate tax in the upcoming national budget.

In its budget proposals presented to the National Board of Revenue (NBR), the association said it is logical to withdraw or rationalise the minimum 2 per cent turnover tax on non-profit operators. This is because income tax is paid on income, not on sales or receipts. "So, paying the minimum tax even after the loss of business means paying tax from the capital," it said.

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The Amtob demanded a reduction of the corporate tax from 25 per cent and 32 per cent for the listed and non-listed companies, from the current 40 and 45 per cent, respectively.

SM Farhad, secretary-general of the Amtob, said in previous years, the revenue of the mobile sector was more than 1 per cent of the country's gross domestic product and the amount of taxes and fees paid by the sector was about 4.5 per cent of the total government tax revenue.

"In other words, the contribution of the telecom sector's taxes to the economy is more than four times its size, while the contribution of the sector to the economy is approximately 7 per cent."

In Bangladesh, despite the expansion of mobile coverage, almost half of the population is yet to be able to be connected to the mobile network. So, one of the conditions for digital inclusion is the reform of the tax structure in the mobile sector, according to the association.