Bangladesh mobile phone users are prepared to spend more as the government is set to increase the supplementary duty on mobile services from 20 percent to 23 percent. This means mobile recharges will attract an overall tax deduction of 56.30%. Out of a 100 Taka recharge, users will receive only 43.70 Taka to spend, while 56.30 Taka will be deducted as 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 represents a substantial rise (from 54.6% deduction today) that was even a burden on users. Data compiled by the Bangladesh Telecommunication Regulatory Commission (BTRC) showed that by November 2024, mobile subscribers and internet users had fallen by 7.3 million and 9.7 million, respectively, since June 2024, indicating the effects of surging costs. Experts warn that this latest tax increase might further restrict access to digital services and deepen the country’s digital divide. There are outcries in several quarters for the government to keep focus on affordability and digital inclusion now, adding that excessive taxation on mobile and internet services would slow the nation’s progress in accessing connectivity.
Source: Rtv News
