State Minister for Posts and Telecommunications Tarana Halim Yesterday (23 April) said they have urged finance ministry to review the tax and VAT structures on mobile handsets and accessories to make smartphone affordable to boost internet penetration.
“We’ve already sent a letter to finance division two days ago for considering tax and VAT structure on mobile handset before budget session to promote local manufacturer,” said Tarana Halim whiling addressing a discussion “Mobile Handset and its Role in Building Digital Bangladesh” as chief guest.
Telecom Reporter’s Network’ Bangladesh (TRNB), a platform of the journalists working in country’s telecommunication sector, organized the discussion in a city hotel.
Mentioning that imposing surcharge is a hindrance towards the journey of digital Bangladesh, the state minister said: “I requested the finance ministry to withdraw tax and VAT to promote local production of smartphone.” She, however, said the finance ministry is yet to give any positive reply.
Terming smartphone as one of the main component for building “digital Bangladesh”, Tarana opined contribution of the sector to country’s GDP would be increased further through slashing tax and VAT on mobile handset.
TRNB general secretary Shamim Ahmed presented a keynote paper on the issue while its President Rashed Mehdi moderated the discussion.
Speaking on the occasion, Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Dr Shahjahan Mahmood said they would form a committee with the representative of customs and handset importers to overcome the barriers on local handset industry.
He asked the handset importers to submit a proposal on reviewing VAT and tax immediately so that they could take appropriate measures to promote the industry.
Director General of Custom Intelligence and Investigation Departments Dr Moinul Khan said National Board of Revenue needs specific proposal from the investors to review tax and VAT structures on imported handset.
He opined IMEI registration of mobile handset would solve all problems regarding security and counterfeit handsets.
BTRC Director General on Spectrum Management Colonel Nasim Parvez said the commission has initiated a six month pilot project to monitor legal handset import and later, it would move to register handset.
Bangladesh Mobile Phone Importer Association (BMPIA) President Ruhul Alam Al Mahbub Manik said most of the World class brand would invest here within 2/3 years if the government would withdraw tax and VAT.
He also requested to the mobile operators to improve 3G network for digital revolution.
BMPIAZ General Secretary Rezwanul Huq Bangladesh would be a huge market if at least one smartphone would be ensured for the country’s nearly 8 crore unique mobile users. “A master roadmap is needed to address where we want to go in next few years,” he added.
GP Head of Corporate Affairs Mahmud Hossain has requested BTRC for allowing locking the handset for 2/3 years so smartphone would be offered with special bundle for the subscribers.
“The mobile operators have brought 80 per cent geographical areas under 3G coverage, but smartphone users are only 20 per cent,” he added.
Dhaka Custom House commissioner Lutfur Rahman said a total of 1.60 crore mobile handset imported so far with estimated cost of Taka 1970 crore and the government has earned revenue Taka 422 crore from it.
