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Tarana wants no tax on SIM ownership change

December 29th, 2015 | by admin
Tarana wants no tax on SIM ownership change

State minister for posts and telecommunication Tarana Halim said “If we consider the SIM cards as commodity, tax has already been paid against those. So, NBR could impose transfer fee, but not any tax if those SIMs are activated earlier.”

The state minister passed the remark against the backdrop of NBR’s claim for tax and VAT on mobile connection during the ongoing biometric SIM registration to curb telephony crimes. All the cell phone users of Bangladesh have to verify their connection using the biometric system that began on December 16.

Tarana Halim said in a meeting recently, they have discussed the issues of taxation and VAT on the SIM cards in presence of the officials NBR, telecommunication department and mobile phone operators. In the meeting, NBR wanted to impose VAT for changing the ownership of mobile connection.

She said that they have found 60,000 SIM cards registered against a single user. “When the SIM cards will be verified using biometric system, new ownership must enlisted in 60,000 SIM cards. So, no tax or VAT during the change of ownership if the number is activated earlier,” noted Tarana.

“As the SIM verification is being done for the national security and interest, there would be huge change of ownership, which was registered in haphazardly without any discipline earlier,” pointed out the state minister.

“I will request the finance minister and NBR officials to avoid double taxation and VAT, as the process is being done in the greater interest,” she said, adding, “We want to be fair for operators and at the same time careful about government revenue.” Tarana Halim, however, said the operators must have to pay tax for new connection as the legal procedures of telecom regulator.

The state minister informed that she already directed the AMTOB to submit the actual number of mobile users to the telecom regulator, according to BSS.

Source: The Financial Express

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