Mobile operators have sought tax treatment comparable to those enjoyed by mobile financial service suppliers and banks on payment for electronic goods through airtime from the interest of consumers and also to make a level playing field for many platforms.
The operators at a recent letter to the National Board of Revenue sought modification of their supplemental duty and surcharge gathered against charge of various electronic services by cellular subscribers as there weren’t any such taxes on sale of electronic goods utilizing MFS and cards issued by banks.
From the letter delivered on July 9the Association of Mobile Telecom Operators of Bangladesh stated that cellular subscribers availed the electronic payment option utilizing cellular airtime accounts through immediate operator billing for assorted digitally consumable services.
However, a customer who purchases any electronic content or support such as games and applications with airtime balance must cover more duties and taxes at the speed of 33.25 percent on the payment because airtime balance is prepaid in character, AMTOB asserted.
Games and programs aren’t telecom service or products in accordance with the VAT law.
Mobile operators market prepaid telecommunication airtime that’s inclusive of a complete 33.25 percent duties and taxation, such as 15 percent supplemental obligation, 17.25 percent VAT and 1 percent surcharge, AMTOB explained.
On the flip side, SD, VAT and surcharge aren’t relevant on digital contents and services bought using MFS such as BKash and banks’ credit cards, it said.
The price of an electronic material worth Tk 100 stays the same if the customer buys it via MFS or banking while it costs Tk 133.25 when he or she purchases it with cellular airtime equilibrium, it clarified.
The cellular operators may adjust the VAT according to the VAT law.
‘End user price should be the same irrespective of source of fund,’ AMTOB composed in the letter signed by its secretary general SM Farhad.
A cell operator awakens the end user price together with the service suppliers after maintaining its commission according to the industrial arrangement because its functions as a payment gateway or group agent such as a bank and MFS supplier.
Mobile operators cover the related VAT on commissions such as a bank and MFS supplier, it stated.
Under the conditions, customer price will go up considerably if cellular operators don’t get the chance to correct the additional SD and surcharge paid just like VAT, it stated.
It is going to likewise not guarantee that a level playing field for telecom operators also will obstruct the pathway for electronic payment, it included.
Thinking about the problems, AMTOB searched an adjustment procedure for the excess SD and surcharge paid since the VAT is corrected to guarantee customer gains, the letter stated.
In accordance with the Bangladesh Telecommunication Regulatory Commission 2018 directive on lead operator charging, cell phone users may make online payments with airtime balance.
The technique, however, is yet to be very popular as a result of additional expenses and lower limits of trades.
The maximum limitation for immediate billing is Tk 600 per trade up to Tk 3,000 annually.
Farhad on Sunday told New Age that the taxation measures should be comparable for many platforms that offer similar services to guarantee a level playing field for everybody.
Mobile subscribers must pay high taxes on cost of digital contents and services such as programs, games, food and tickets under the present system, ” he explained.
In addition, he stated that the trade limitation also needs to be raised considering the worth of readers.