The cost of mobile phone calls and internet usage in Bangladesh is set to increase once again. The interim government plans to raise the supplementary duty on mobile phone services from the current 20% to 23%. A formal notification regarding this increase is expected to be issued soon, according to sources at the National Board of Revenue (NBR).
The proposal to raise the supplementary duty by an additional 3% has already received approval from higher authorities and two ministries. Once the notification is issued, the implementation of the new tax structure will proceed.
With the 3% hike, customers will pay a total of Tk56.3 in taxes on a Tk100 recharge, including Tk29.8 for supplementary duty, VAT, and surcharge, Tk6.1 for revenue sharing and minimum tax, and Tk20.4 in indirect taxes. As a result, users will only have Tk43.7 remaining from their Tk100 recharge after tax deductions.
In the previous fiscal budget under the last government, the supplementary duty on mobile phone services was increased from 15% to 20%. As of now, for a Tk100 recharge, users are paying Tk28.1 in supplementary duty, VAT, and surcharge, Tk6.1 in revenue sharing and minimum tax, and Tk20.4 in indirect taxes, leaving them with Tk45.4 for usage after tax deductions. This means users are effectively losing Tk54.6 in taxes for every Tk100 recharge.
Md Mohiuddin Ahmed, President of the Bangladesh Mobile Phone Consumer Association, criticized the high tax rates, pointing out that Bangladesh lags behind other countries in terms of internet services but ranks among the highest in global VAT rates. He warned that higher taxes would discourage citizens from using internet services and exacerbate inequality, particularly since 48% of the population still lacks internet access.
The repeated increases in mobile service costs have led to a decline in internet usage, with many customers cutting back on their data consumption due to rising expenses. This is hampering the nation’s progress in information and communication technology (ICT). According to recent data from the Bangladesh Telecommunication Regulatory Commission (BTRC), the number of mobile phone subscribers decreased by 7.3 million, dropping to 188.7 million in November. Similarly, the number of internet users fell by 9.7 million, down to 132.8 million during the same period.
