MNP tax-free
Mobile users will no longer have to bear the SIM tax of Tk 115 for switching operators while retaining their existing 11-digit numbers after the revenue authority waived the charges with a view to popularising the mobile number portability (MNP) service.
Subsequently, users will now have to count just the service charge of Tk 57 for availing the MNP service.
The tax waiver comes more than three months after the government opened the scope for mobile users to switch operators without changing their numbers with the view to increasing competition and egging on operators to improve their service quality.
“We think this new initiative will make more people interested in switching operators while retaining their existing number,” said Mohammad Zulfikar, chief executive officer at Infozillion Teletech BD, the lone MNP service provider in the country.
After much delays Bangladesh finally introduced MNP on October 1 -- more than a decade after the service became available globally -- becoming the 72nd country to do so.
Initially mobile users rushed to change carriers, but the service progressively lost lustre thanks to the charges of Tk 172.
As of yesterday, 1.05 lakh subscribers have swapped operators, with Robi being the biggest beneficiary. In the first three weeks after the introduction, Robi pulled in 16,916 customers to its network from its three rivals, according to a report of the telecom regulator.
Shahed Alam, head of regulatory and corporate affairs at Robi, expects the trend would reverse following the waiver of VAT and SD on MNP by the National Board of Revenue. “It is a very positive step,” he added.
Meanwhile, the Bangladesh Telecommu-nication Regulatory Commission (BTRC) yesterday published a report that showed 11,676 Grameenphone customers left the market leader by taking up MNP service. On the other hand, it drew 4,041 new customers from its competitors.
Robi, the second largest operator, lost 5,973 customers since the MNP was introduced on a trial basis.
To avail the VAT and SD waiver, operators will have to furnish reports on the first week of the following month to the field officer of NBR and BTRC on the total number of SIMs that were ported in and ported out during the month that passed.
Similarly, MNP service processing firms will have to submit the names of ported in and ported out subscribers, their mobile phone numbers and the names of the existing and previous operators to the field office of VAT and the BTRC. The revenue authority also warned that it could launch enquiry to see compliance of rules by firms enjoying the VAT and SD waiver on MNP.
“The waiver could be cancelled instantly if any rule is violated,” said the NBR in its notification.
The revenue impact would be high if the privilege is misused, said an official of the tax authority.
“That's the reason we have attached some conditions,” he said.
