Amtob demands lower corporate tax for FY24

Business Desk :
The Association of Mobile Telecom Operators of Bangladesh (Amtob), the trade organization representing all telecom operators in the country, proposed reducing corporate tax rate on mobile phone operator companies in the FY2024 budget.
Mobile operators are required to pay a minimum tax of 2% of their annual gross revenue which is in conflict with the Income Tax Act. Paying minimum tax despite loss in business means paying tax out of capital which is a hindrance to business expansion, said Amtob secretary general Brig Gen (retd) SM Farhad during a pre-budget discussion meeting with the National Board of Revenue (NBR) on Sunday. Amtob also proposed to withdraw the minimum turnover tax and abolish the tax of Tk200 imposed on SIM cards. During the meeting, SM Farhad presented a 16-point proposal on telecom-related income tax, value-added tax, import duty, and supplementary duty.
The general corporate tax rate in the country is 27.5% for unlisted companies and 20% to 22.5% for listed companies.
However, despite being an essential service, Bangladesh’s mobile sector has to pay a high rate of corporate tax. The tax rate is 40% for listed mobile operators and 45% for unlisted companies, he added.
“In terms of taxation, instead of classifying mobile operators as a separate category, we demand that they be reorganized in line with other companies and that the tax be reduced at that rate,” the Amtob secretary general further said.
“We need to remember that the top three operators in the mobile sector are all foreign investors and their contribution to the socioeconomic development of the country is immense. As the growth of mobile service providers increases, customers will get better quality services and the government will get more revenue,” he added.