The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has expressed concern that the proposed 10 percent supplementary duty (SD) on over-the-top (OTT) platforms in the national budget could undermine the accessibility and affordability of digital content, posing a barrier to building a knowledge-based society.
In its official budget reaction released on Wednesday, AMTOB stated that it had submitted several key recommendations ahead of the budget, including lowering the corporate tax rate for both listed and non-listed operators, eliminating the SIM tax, SIM replacement tax, and the 1 percent surcharge.
Additionally, AMTOB said it had hoped for a reduction in taxes on mobile handsets to support broader smartphone adoption and accelerate data usage across the country. “However, the proposed budget includes none of these expected measures,” it noted.
While AMTOB welcomed the reduction of withholding tax on internet services from 10 percent to 5 percent, it clarified that this only applies to business-to-business (B2B) transactions and will not reduce internet costs for individual consumers.
The association did, however, commend the government’s decision to reduce the minimum corporate tax for the mobile telecom sector from 2 percent to 1.5 percent. It also thanked the authorities for resolving the longstanding issues related to the Proof of Submission of Return (PSR) requirements for the Bangladesh Telecommunication Regulatory Commission (BTRC) and other non-income-generating regulatory bodies.
“In light of this progress, we remain optimistic about the swift resolution of similar longstanding issues with other government entities,” AMTOB added.
Over the past decade, the telecom sector has faced a steady rise in taxation, which has made it increasingly difficult for operators to achieve a reasonable return on investment, the association stated.
“We appreciate the recent changes and remain hopeful that the government will consider our remaining proposals to further unlock the country’s full digital potential,” AMTOB concluded.