Mobile phone calls, car registration to get costlier

Finance minister AMA Muhith on Thursday proposed to impose 2 per cent tax on both the post-paid and pre-paid mobile phone uses and increase the tax on private vehicle registration.

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Mobile subscribers, who now pay 15 per cent VAT on mobile uses, will have to count additional 2 per cent tax, which would be deducted at source.

Muhith proposed that tax at source would be deducted at the rate of 2 per cent on the post-paid mobile phone bill and the amount would be recharged on prepaid cards.

He proposed that the rate of tax on privately owned cars, jeeps and microbus, which are deducted at source at the time of renewal of registration and fitness, would be increased.

He, however, did not mention the amount of increased tax on vehicle registration.
Besides, the minister proposed to impose 3-5 per cent tax at source at the time of selling land by any land developing company.