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Fresh tax on mobile calls

Govt mulls surcharge on cellphone users to create ’energy fund'

Rejaul Karim Byron
The government now plans to impose surcharge on mobile phone users at the rate ofTk 0.15 to 0.20 per call.
The move, which comes on top of a 2 percent tax on mobile talk-time proposed by
the finance minister in his budget speech, is aimed at creating an energy fund, officials say.
The power, energy and mineral resources ministry will place the proposal at a high-level meeting chaired by Prime Minister Sheikh Hasina tomorrow. The meeting was originally scheduled for last Thursday, but that did not happen.
The burden of surcharge may create public discontent, a power ministry official said, seeking anonymity.
Nevertheless, imposing a further surcharge on mobile phone calls made after 12:00 midnight might also be discussed at tomorrow's meeting, added the official.
Contacted, Centre for Policy Dialogue Executive Director Mustafizur Rahman said imposition of surcharges would be "regressive".
"Many poor people now use mobile phone. Imposition of such tax or surcharge on mobile phone will not be justified in any consideration," he told The Daily Star.
As of April this year, 9.63 crore people in the country use mobile phones, accord-ing to Bangladesh Telecommunication Regulatory Commission.
A ministry paper prepared for the top-level meet says the cost of fuel-based power plants has shot up due to the rise in fuel prices on the international market and also for subsidy cuts in energy sector.
When the work orders for furnace oil-based power plants were given, the price of furnace oil was Tk 26 per
litre, which is now Tk 60. If the price is adjusted with the international market, it will go up further, the paper adds.
Currently, production cost of per unit electricity is Tk 6.8 while it sells Tk 4.02 on an average. A proposal to hike power tariff by Tk 2 a unit is under consideration of the Bangladesh Energy Regulatory Commission. If approved, the fresh hike will bring down the annual deficit to Tk 3,500 crore, according to the ministry document.
In the current fiscal year Bangladesh Petroleum Corporation sought about Tk 28,000 crore in fuel subsidy, citing price hike on the international market, an official in the finance ministry said.
However, the government eased the pressure by increasing fuel prices thrice in the last nine months.
Even so, the government will have to count a huge subsidy on fuel. In the current FY, the official said, the government already spent Tk 9,000 crore in fuel subsidy.