June 14, 2009

Mobile Phone Importers Criticize New Tax

Mobile phone importers have urged the government to rethink the proposal to raise taxes on cellphone sets in the new budget. The Mobile Phone Importers Association, at a press conference Sunday, called the new 25 percent duty 'illogical and unrealistic'.

"Millions are using mobiles phones; their use is spreading with millions more considering them a necessity in their day-to-day life," MPIA chief NSM Faruque told reporters at the Dhaka Reporters' Unity. "Under the circumstances, the government's proposal of increasing import tax in the 2009-10 budget will dampen people's enthusiasm, discouraging the use of mobile phones. In the interests of the people, we demand that the proposed new duty is reconsidered.

" The current duty is fixed at Tk 300 for any mobile set irrespective of value. Finance minister AMA Muhith's proposed budget sets a 25 percent rate on all sets. Faisal Alim, the association's general secretary, said the government would eventually lose revenue if the proposed duty and a 3.16 percent VAT get implemented.

Revenue earnings netted in the sector through the current fiscal year stands at Tk 225 crore and the new budget sees it rising to Tk 550 crore, he said. "But it may actually slump to a mere Tk 55 crore if the proposed new rates are enforced." said Alim.

Source: bdnews24.com


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