Excessive taxes contradict govt’s digitisation drive: Telecom operators

The telecommunication trade is taking part in a key position in materialising the federal government’s dream of huge digitisation of the nation, however the prevailing tax construction for the trade makes the buyers uncertain if the federal government is actually encouraging the sector’s progress, trade insiders stated at a coverage dialogue yesterday.

Entrepreneurs within the telecom sector must pay taxes at charges as excessive as that set for the tobacco trade, they identified, asking for making the tax coverage and the ecosystem business-friendly.

They instructed figuring out the problems associated to the sector by consultations with stakeholders involved and performing accordingly.

The Affiliation of Cell Telecom Operators of Bangladesh (MTOB), in collaboration with the Bangladesh Web Governance Discussion board (BIGF), organised the coverage dialogue entitled “Telecom tax coverage and ecosystem” held at Pan Pacific Sonargaon Resort in Dhaka on Wednesday.

In his keynote presentation on the programme, Shahed Alam, chief company and regulatory officer at Robi Axiata Restricted, stated tax charges for the cell telecom sector in Bangladesh are significantly excessive when in comparison with the neighbouring nations.

At current, cell community operators within the nation pay 40%-45% company tax and a minimal of two% in turnover tax, he stated, including the operators’ return on funding, nevertheless, is inadequate.

“On the one hand, the operators’ common earnings per person is low whereas the price of cell voice and cell web is likely one of the lowest on this planet. However, excessive taxes make it tougher for service suppliers to outlive. We, subsequently, search a logical tax construction for the trade,” he added.

He stated some coverage incentives are required for the telecommunication sector to construct Bangladesh as a sensible nation.

The dialogue programme was presided over and moderated by Hasanul Haq Inu, MP, chairperson of the BIGF and chairman of the Parliamentary Standing Committee on the Ministry of Info and Broadcasting, whereas Posts and Telecommunications Minister Mustafa Jabbar attended it as chief visitor.

Mustafa Jabbar stated, “I agree that extreme taxes have been a long-standing concern. However, I believe we didn’t persuade the NBR in regards to the damaging impression of excessive taxes on telecom companies. We want to consider a digital civilization the place taxation must be rational.”

Mentioning that taxes on telecom companies are extraordinarily excessive in Bangladesh, Hasanul Haq Inu acknowledged that decreasing taxes has no damaging penalties for the federal government as a result of it boosts income not directly.

“Whereas the turnover tax for the tobacco sector is ready at 1%, it’s 2% for the cell trade. That is ill-judged and must be introduced all the way down to lower than 1%.”

He additionally instructed bringing the company tax all the way down to 30% from 45%.

BTRC Chairman Shyam Sunder Sikder stated “We pursue the suitable procedures to facilitate native and international enterprises to conduct their enterprise in Bangladesh.”

The federal government ought to assessment the company tax, he stated within the earlier years, cell operators’ proposals to assessment taxation had been forwarded to the NBR and the Finance Division. “However this yr, we integrated our suggestions of their proposals earlier than forwarding them,” he stated.

Posts and Telecommunications Secretary Khalilur Rahman, Robi Appearing Chief Government Officer and CFO M Riyaaz Rasheed, Banglalink Chief Company and Regulatory Affairs Taimur Rahman, Grameenphone CCAO (Appearing) Hossain Sadat, and [email protected] Chief Expertise Officer Sumon Ahmed Sabir, amongst others, additionally spoke on the dialogue.


https://www.tbsnews.web/bangladesh/telecom/high-taxes-contradict-govts-digitisation-drive-telecom-operators-402846

Next Post

COTEC HOLDINGS CORP. COMPLETES CHANGE OF BUSINESS

VANCOUVER, BC / ACCESSWIRE / April 13, 2022 / CoTec Holdings Corp. (TSX-V:CTH) (the “Company”) is happy to introduced that it has accomplished its beforehand introduced proposed change of enterprise from mineral exploration to an funding issuer (the “COB”) underneath the foundations of the TSX Enterprise Alternate (“TSXV”). The Company […]