Mobile operators welcome budget

The Association of Mobile Telecom Operators (AMTOB) has welcomed the budget proposed for 2025-26 fiscal year.

"We sincerely welcome the interim government's decision to reduce the minimum corporate tax on the mobile sector from 2% to 1.5%," said a press statement issued today (4 June).

The association also thanked the relevant authorities for resolving the longstanding complexities surrounding Proof of Submission of Return (PSR) requirements for the BTRC and other non-income-generating regulatory bodies.

"In this backdrop, we are very optimistic about the quick resolution of similar long-pending problems with other government entities."

Over the past decade, the steady increase in taxation on the mobile telecom sector has made it increasingly difficult for operators to achieve a reasonable return on their investments.

On top of that, the introduction of a 10% supplementary duty on OTT platforms in the budget could affect the accessibility and affordability of digital content—creating a barrier to building a knowledge-based society, AMTOB opined.

"While we had submitted several key recommendations — including lowering the corporate tax rate for both listed and non-listed operators, eliminating SIM tax, SIM replacement tax and 1% surcharge."

Furthermore, it was expected that the government would reduce taxes on mobile handsets to encourage broader smartphone adoption and drive data growth. However, the proposed budget showed no sign of such measures or any related initiative.

Although the reduction in withholding tax on internet services from 10% to 5% is a positive move, it is important to clarify that this applies solely to business-to-business transactions.

As such, it will not have any direct impact on the internet costs incurred by individual consumers, reads the press statement.

"We appreciate the recent changes and remain hopeful that the government will consider our remaining proposals to help further unlock the nation's full digital potential together," it added.