Mobile handsets importers especially Samsung,has calculated the proposed Value Added Tax if implemented will hamper third generation (3G) internet penetration.
“Our partners are also in fear over their investment as we have discussed a lot about the current tax proposal,” said Hasan Mehedi, head of mobile of Samsung Electronics.
The proposed tax measures would give a blow to the government’s plan for turning Bangladesh into digital one, especially on internet penetration, he said.
“We have calculated the numbers in different way but always found governments revenue from this sector will reduce 15 to 20 per cent if proposed VAT is implemented.”
A team of handsets importers will meet with the finance Abul Maal Abdul Muhith Sunday to discussion the issue.
Choon Soo Moon, managing director of Samsung Electronics, Bangladesh also will attend the meeting.
In the proposed budget, Finance Minister proposed 15 per cent fresh VAT on handset import with existing 10 per cent import duties. The minister also proposed 5 per cent AIT (Advance Income Tax).
Source: Daily Observer
