The deadlock over auction of 3G mobile service spectrum seems to start breaking as the NBR and mobile phone operators have agreed to find a solution to four operators’ dues of over Tk31bn in SIM replacement tax.
After weeks of negotiations, the National Board of Revenue and telecom operators Sunday decided that a joint committee would scrutinise documents of Grameenphone, Banglalink, Robi and Airtelon SIM replacement tax dues and report to the board.
The NBR had claimed Tk31.07bntax from the four operators in 2012 – Tk15.80bn from Grameenphone, Tk7.74bn from Banglalink, Tk6.64bn from Robi and Tk850m from Airtel.
The joint committee will have representatives from the NBR, the Bangladesh Telecommunication Regulatory Commission (BTRC), the Association of Mobile Telecom Operators of Bangladesh (Amtob), the Large Taxpayers’ Unit (LTU), and the operators.
“There have been a lot of misconceptions and misunderstanding regarding this issues but we are very optimistic about resolving the problems,” Amtob Secretary General TIM Nurul Kabir told the Dhaka Tribune Sunday.
Investigations found that mobile operators sold old SIMs, mostly inactive for a long period, to new clients but did not pay taxes saying they had only replaced those SIMs to the original clients.
Mobile companies, however, denied the allegation.
The NBR and Amtob leaders had been engaged in negotiations since early last week to resolve long-standing tax disputes, especially those related to SIM replacement, before the 3G auction scheduled for September 2. The last date for applying for the auction is August 1.
Earlier, the NBR proposed alternative dispute regulation for resolving the issue, but the mobile operators did not show any interest.
The NBR made the proposal as the High Court sent back a case related to SIM replacement tax to the LTU on June 6 and directed the revenue authorities to resolve the issue with the four mobile operators within 120 days.
After the operators file applications for 3G auction the BTRC will consult them about the auction procedure. The operators will have to deposit the auction’s earnest money before August 19.
Sources said the government authorities concerned and the operators could work on the process before depositing the earnest money.
The mobile operators demanded reduction of 7.5% VAT on 3G spectrum fees. They also claimed 5% VAT on 3G spectrum fees which was 15% earlier in the first proposal.
