Country’s mobile phone importers have urged the government to reduce the proposed VAT and Tax on imported mobile handsets, says a press release.

Issued by Bangladesh Mobile Phone Importers Association (BMPIA) on Tuesday, the press release called for bringing down the total VAT, surcharge and Tax within 5% to 10%.

In the proposed budget for the fiscal year 2015-16, a total of 21.75% tax (5% Tax+ 15%+ VAT+1%surcharge) has been imposed on mobile imports against the 10% of previous year.

The increase in tax has been resulted in the decline in mobile imports by 40% compared to that of the last first quarter of FY 2014-15, said BMPIA press release.

It was also mentioned that high tax on mobile imports is encouraging smuggling of mobile phones in the country.