Bangladesh’s government has announced plans to raise the corporation tax on mobile networks that are listed on the local stock exchange, although the new rate will still be lower than that applied to non-listed companies.
Mobile networks are taxed at a 45% rate on corporate profits, but that was reduced to 35% if a company listed its shares on the local stock exchange as an incentive to boost listings.
However, of the country’s mobile networks, only Grameenphone has taken up the offer.
Now the government plans to raise the tax on listed companies to 40%, while leaving it at 45% for unlisted companies.
Finance Minister AMA Muhith said the provision was made to reduce the gap in tax rates between the listed and non-listed mobile operators.
The move comes as the government is still trying to settle a dispute with the mobile networks over how VAT is to be applied to the forthcoming 3G licenses.
The government has however recently agreed to half the taxes on SIM Cards, although the networks are calling for it to be scrapped entirely.