Mobile phone users in Bangladesh are bracing for increased costs as the government plans to raise the supplementary duty on mobile services from 20% to 23%. This will result in a total tax deduction of 56.30% on mobile recharges. For every 100 Taka recharge, users will only get 43.70 Taka to use, with 56.30 Taka deducted for taxes and fees.
The decision has drawn criticism from users and consumer groups. Social media discussions highlight frustration over the growing financial burden, particularly for students and low-income groups. Rising costs are making it harder for many to afford essential connectivity.
Bangladesh Mobile Phone Consumers’ Association President Mohiuddin Ahmed said, “We are already lagging behind in internet service quality, yet we impose one of the highest tax rates globally. This will discourage the use of digital services and create further inequality.”
Under the new rates, the total 56.30% deduction includes:
29.8% for supplementary duty, VAT, and surcharge,
6.1% for revenue share and minimum tax, and
20.4% for indirect taxes.
This marks a significant increase from the current 54.6% deduction, which was already straining users.
The Bangladesh Telecommunication Regulatory Commission (BTRC) reported a decline of 7.3 million mobile subscribers and 9.7 million internet users between June and November 2024, reflecting the impact of rising costs. Experts warn that this new tax hike could further limit access to digital services, widening the country’s digital divide.
Many are urging the government to prioritize affordability and digital inclusion, arguing that excessive taxation on mobile and internet services will hinder the country’s progress in connectivity. A formal notification on the tax increase is expected soon.
Source: Rtv News
