Budget proposes 5pc to raise duty on SIMs

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Dhaka, June 2: The use of mobile phones will get costlier, as the budget for the coming 2016-17 FY proposes to raise the duty on SIM cards for five per cent.

Currently, there is a 3 percent supplementary duty on all kinds of mobile service use.

Finance Minister AMA Muhith said in his budget speech on Thursday that he wished to increase the supplementary duty on all kinds of mobile services.

He told the House that taxes on SIM cards had been ‘significantly’ reduced in the current budget, resulting in a revenue drop from the telecom sector.

“In order to enhance revenue collection from this sector, I am proposing to increase the rate of supplementary duty on SIM card related services from 3 percent to 5 percent.”

Currently there are 13.20 crore active mobile connections and of them 5.95 crore are internet connected. Markets total revenue now around Tk 25,000 crore.

Minister Muhith said, “In FY 15-16 budget, we have significantly reduced the tax on SIM card. This has resulted in the reduction in revenue collection from mobile sectors.”

“In order to enhance revenue collection from this sector, I am proposing to increase the rate of supplementary duty on SIM card related services from 3 percent to 5 percent.”