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๐Ÿ‡ง๐Ÿ‡ฉ Bangladesh /Economy & Trade

Bangladesh mobile operators owe government Tk 13,144 crore

From Daily Star · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Bangladesh's four mobile operators collectively owe Tk 13,144 crore in outstanding revenue to the government.
  • Teletalk Bangladesh Ltd has the largest outstanding amount at Tk 5,954 crore, with a proposal to convert part of it into equity under consideration.
  • Grameenphone, Robi Axiata, and Banglalink also have significant outstanding dues related to license fees, spectrum charges, and VAT, with several cases pending in court.

Bangladesh's telecommunications sector faces a significant financial challenge as the country's four major mobile operators collectively owe Tk 13,144 crore (approximately $112 million USD) in outstanding revenue to the government. This figure encompasses various charges, including license fees, spectrum charges, revenue sharing, VAT, and audit objections.

Teletalk Bangladesh Ltd, a state-owned operator, leads the list with Tk 5,954 crore in dues. The government is currently considering Teletalk's application to convert Tk 5,554 crore of these outstanding amounts into equity. This move could potentially alter the company's financial structure and its relationship with the government.

Grameenphone, the largest mobile operator, owes Tk 6,101.82 crore. Initially facing claims of Tk 8,494.01 crore from a Bangladesh Telecommunication Regulatory Commission (BTRC) audit, the company has paid Tk 2,000 crore and an additional Tk 392.19 crore related to a VAT case, following court directives. The remaining amount is subject to ongoing High Court proceedings.

Robi Axiata and Banglalink also have substantial outstanding liabilities. Robi owes Tk 678 crore from audit objections, having paid Tk 138 crore under court orders. It also faces a separate Tk 125 crore VAT liability on revenue-sharing payments, with its case pending judicial review. Banglalink has Tk 430 crore outstanding from audit objections after paying Tk 381 crore, and additionally owes Tk 125 crore in VAT arrears on revenue-sharing payments, for which BTRC is initiating legal action.

The significant outstanding amounts highlight ongoing disputes and financial complexities between the operators and the regulatory body. Many of these cases are tied up in legal battles, awaiting resolution in the High Court, indicating a protracted process for the government to recover the full dues.

DistantNews Editorial

Originally published by Daily Star in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.