After paying 15 per cent VAT, local network operators have to deposit 5.5 per cent of their revenue to the BTRC as a part of the regulatory body's condition for using 2G and 3G licences.

As per the rules, there is a provision to pay 15 per cent VAT at source on the amount to be paid as revenue shared with the BTRC.

However, as the indirect tax is collected before depositing the revenue-sharing amount, collection of VAT turns out to be double taxation, the NBR said in a notification on January 27.

The revenue authority had waived VAT on revenue sharing under the VAT law 1991, prior to the implementation of the VAT and Supplementary Duty Act 2012, according to officials.

As collection of VAT leads to double taxation, the NBR waived VAT on the revenue sharing amounts for 2G and 3G licences, they said.

SM Farhad, secretary general of the Association of Mobile Telecom Operators of Bangladesh (AMTOB), thanked the NBR for lifting the VAT at source on the revenue shared by mobile operators with the BTRC.

"It was an instance of dual taxation which went against the law of the land. However, the order is applicable only for 2G and 3G but it should be for all licences, such as 4G and onwards. We hope that the NBR will consider this and revise the order," he added.