The Government of Bangladesh announced its intention to impose more taxes on mobile bills last week. My op-ed in the Daily Star drew on economic principles and regional experience.
There is no debate about the government requiring money. A dynamic sector such as telecom must make its fair contribution.
Collection leakages in telecom are much less than in other sectors because it is a modern sector with automated billing and collection mechanisms. Its systems are also conducive to various calibrations of rates and such. Therefore, it is tempting to turn to telecom as the first source when looking for money.
But economic principles have not been abolished. Charging more tax on a good or service reduces its consumption. In some cases, the government wants to reduce consumption of certain goods and services.
Imposing additional taxes on demerit or bad goods is done with the purpose of reducing consumption. As the government imposes additional layers of taxes on mobile use, it has a duty to make clear how it perceives mobile use. Is it a demerit good like cigarettes?
Or is it a merit good as research appears to suggest, one that will contribute to economic growth and improve the lives of its users?
And finally, it should look at the available evidence of the effects of mobile taxes. Obviously, those who pay the taxes are hurt by higher taxes. The question is will the government be hurt too?
2 Comments
Abu Saeed Khan
The mobile industry of Bangladesh is jogging, not walking, in the minefield of regulations. The Finance Minister has assured of revisiting the proposed tax. Yet the National Board of Revenue reserves the right to impose any tax anytime through Statutory Regulatory Ordinance (SRO) bypassing the parliament. Anytime.
Abu Saeed Khan
The finance minister of Bangladesh said, “I didn’t expect so much reaction,” about imposing tax on mobile phone bill in the proposed budget for the next fiscal year. “We are considering a threshold, crossing which a user will have to pay tax. It is now under processing.” Here is the news.
Election Misinformation in South and South-East Asia: The phenomenon and measures to counter it | Report Draft
In 2023, LIRNEasia led an IDRC-funded project to 1) understand election influence operations and measures to counter disinformation globally, especially pertaining to Asia; 2) map actors who are involved in election related counter-disinformation actions in five countries in South and Southeast Asia, and 3) document their past and upcoming activities related to countering disinformation around elections. This research was intended to lay the groundwork for a network of actors, enabling them to systematically work towards countering disinformation related to elections and document the impact of their actions.
සමාජ මාධ්ය පාලනය කරන්න ආණ්ඩුවට පුළුවන්ද?
In an interview with Mawbima newspaper, LIRNEasia CEO Helani Galpaya highlighted the importance of accurate data in holding governments accountable between elections, emphasising its critical role in ensuring a functioning democracy. She also discussed the impact of misinformation and disinformation on public opinion, the role of fact-checking, and the importance of media independence.
Taxing global multinationals for fair competition
The digital economy is experiencing remarkable growth globally, and Sri Lanka is no exception. Wattegama (2021) valued Sri Lanka’s digital economy at approximately USD 3.
Links
User Login
Themes
Social
Twitter
Facebook
RSS Feed
Contact
12, Balcombe Place, Colombo 08
Sri Lanka
+94 (0)11 267 1160
+94 (0)11 267 5212
info [at] lirneasia [dot] net
Copyright © 2024 LIRNEasia
a regional ICT policy and regulation think tank active across the Asia Pacific