ZCZC
BSS-50
ROBI-BUDGET-TAX
Robi seeks removal of 2pc minimum turnover tax
DHAKA, April 28, 2021 (BSS) – Mobile phone operator Robi today urged the government to remove 2 percent minimum tax on the turnover in the upcoming fiscal budget terming this provision as unfair as the investment is being discouraged for it.
The operator’s managing director and chief executive officer Mahtab Uddin Ahmed made this plea at an online press briefing titled “Unfair Taxation Regime Discouraging Investment” in this evening.
He said the minimum turnover taxation provision could be mentioned as “unconstitutional” as well when it is imposed on anyone or entity which incurs losses at the end of the year.
Ahmed said applicable tax on them (Robi) was 73 percent following the imposition of the minimum 2 percent turnover tax.
He revealed Robi has realized only Taka 380 crore as profit in the last 22 years against its investment of Taka 26,838 crore in Bangladesh due to the high taxation regime and high spectrum price.
The Robi Managing Director said the high taxation on the telecom companies are seemed to be they (operators) are even more harmful than the tobacco companies, although the telecom operators have been contributing in many ways to the country’s economy and in the digitization process.
For instance, he said, the applicable minimum turnover tax on tobacco is 1 percent while on alcohol 0.6 percent but it is 2 percent on mobile network operators. “The taxation rate is very unfair, irrational and discriminatory,” he added.
The provision of minimum turnover tax on telecom operators should be revoked in the upcoming fiscal year 2021-2022 so that the telecom operator can invest more for the development of the sector, Ahmed demanded.
He, however, said Robi got enlisted with the stock exchanges amid assurance from different government high-ups that the tax rate for it would be reduced, but the promise is yet to be implemented.
None of the countries, where Robi’s parent company Axiata has operations, were facing such high taxation and that’s why the other subsidiaries of Axiata in other countries were making higher profit, Ahmed elaborated.
In 2020, Robi generated only Taka 155 crore in profit while the NBR received Taka 3,035 crore from the operator and BTRC received Taka 1,201 crore against its Taka 7,564 crore in revenue.
Robi chief corporate and regulatory officer Shahed Alam said the operator was unable to make the desired profit mainly due to the minimum 2 percent taxation provision.
It’s not only the problem of Robi but also the problem of general investments of the capital market, he said.
BSS/MAK/RY/20:18hrs