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No VAT and SD on MNP Service

The government has removed the value added tax (VAT) and supplementary duty on the SIM replacement under the mobile number portability (MNP) service. Now a subscriber who changes the SIM number under MNP service will not need to pay any SIM tax.

The Finance Ministry issued a gazette notification on January 13 in which it removed the VAT and SD on each SIM card used for MNP service as per the section 14 (A) of the VAT Act 1991.

Mosharraf Hossain Bhuiyah, Senior Secretary of the Finance Ministry signed on the gazette notification which was released yesterday.

Lauding the removal of tax on SIM replacement under the MNP service, Shahed Alam, Head of Corporate Affairs of mobile operator Robi said, this will create a better competition among the mobile operators.

According to the gazette notification, the exemption of VAT and SD on SIM card would be applicable provided that the mobile operators in the first week of each month submit to the Bangladesh Telecommunication Regulatory Commission (BTRC) the information about the total number of SIM cards, and the amount of subscribers ported in and ported out from each of their networks.

Earlier the government had reduced the cost of the MNP service that enables customers to switch to different operators without changing their existing mobile phone numbers—from Tk 157.50 to Tk 57.50.

After its initial launch on October 1, the charge for the MNP service was a total of Tk157.50—including a Tk100 SIM Tax, Tk50 service charge, and 15 percent VAT.

The reduction came with the government’s decision to decrease the Tk100 SIM Tax—reducing the total cost to only Tk57.50.

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