SIM tax in Mobile phone operators

The Association of Mobile Telecom Operators of Bangladesh on Sunday requested the prime minister to waive the SIM tax, expressing ‘disappointment’ at the proposal for tax being retained on SIM in the budget proposed for the 2009–2010 financial year.

The association of six mobile operators also claimed the SIM tax at Tk 800 for each new mobile connection subscription was the ‘biggest barrier’ to the growth of mobile industry in Bangladesh and the government’s revenue from SIM tax would drop further because of stagnated growth of the mobile industry.

They also resented imposition of 25 per cent import duty on mobile sets instead of the existing fixed rate of Tk 300 a set.

‘We are disappointed that the budget proposal announced on Thursday continued retaining the SIM tax at Tk 800 on each new connection of mobile subscription,’ said Zakiul Islam, president of the association and senior manager of Banglalink, at a briefing at the Sonargaon Hotel.

‘We request the prime minister and her government to kindly waive the SIM tax in view of development and digital Bangladesh,’ said Grameenphone corporate affairs chief Raihan Shamsi.

He said the government revenue from SIM tax was Tk 426 crore in the first quarter of 2008, but it dropped to Tk 147 crore in the first quarter in 2009 as operators withdrew subsidies in sales of SIMs after incurring losses. ‘This downward trend will continue if SIM tax is still in place,’ he claimed.