The Association of Mobile Telecom Operators of Bangladesh (AMTOB) Wednesday urged the government to fix the corporate tax rate for the mobile operator companies at 25 per cent slashing it by 15 per cent in the upcoming national budget.
Secretary General of AMTOB Brig Gen (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.
The AMTOB secretary general demanded for reducing the corporate tax rate of the listed mobile operators at 25 per cent from the existing 40 per cent while that of the non-listed companies at 32 per cent from the existing level of 45 per cent.
He also demanded for withdrawing or rationalising minimum two per cent turnover tax on non-profit operators side by side reducing the supplementary duty on data services at five per cent alongside increasing the VAT at 15 per cent 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 repealing the Tk 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, the 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.
Bidi Shilpa Malik Samity President Krishna Bijoy Dey demanded to withdraw 10 per cent advance income tax on Bidi.
He also proposed supplying band rolls for bidi as arrears like for the cigarettes.
Bangladesh Beverage Manufacturers Association President M Harunur Rashid proposed for withdrawing five per cent supplementary duty on drinking water side by side reducing the overall tax rate on soft drinks at a rational level from the existing 43.75 per cent.
Besides, the industry leaders also demanded for reducing the supplementary duty on carbonated beverages to 15 per cent from the existing level of 25 per cent.
