The cost for internet and talk-time will further increased as the interim government is set to raise the supplementary duty rate to 23 percent from present 20 percent in the sector. A gazette regarding this may be issued soon.
National Revenue Board (NBR) source said: “On mobile phone services another three percent supplementary duty will be added to the existing 20 percent tariff. The apex body of interim government has approved the duty.”
Two ministries also approved this decision, he added, saying: “Once the gazette is issued, it can be implemented.”
According to previous fiscal year data, the government on 2024-25 FY increased the supplementary duty on mobile phone services by five percent, making it 20 percent from 15. Currently, if anyone recharges 100 taka, he has to pay 28.1 taka as supplementary duty, VAT and surcharge. Another 6.1 taka is charged as revenue share and minimum tax amount, 20.4 taka as the indirect tax.
A total 54.6 taka is goes to government’s fund, if the user recharges 100 taka.
If the interim government increases the supplementary duty by another 3 percent, the total VAT will be 56.3 taka.
Of which, the supplementary duty, VAT and surcharge will be 29.8 taka. The revenue share and minimum tax will be 6.1 taka, and the indirect tax will be 20.4 taka. If a customer recharges 100 taka, the total tax will be 56.3 taka.
Basically, a customer can use only 43.7 taka out of 100 taka phone recharge.
Due to the hike in the price of mobile services on a regular break, people are cutting their internet costs and talk-time, resulting in a decrease in the number of internet users. Therefore, the Bangladeshi people are walking back, other than taking the advantages of internet.
According to Tele Communication Regulatory Commission (BTRC) data, “In November, there were 188.7 million mobile phone subscribers, down 7.3 million from June. On the other hand, the number of mobile internet users has decreased by 9.7 million from June to 132.8 million.
Expressing concern over the decision, Bangladesh Mobile Phone Consumers’ Association President Mohiuddin Ahmed said: “We are at the rock bottom in internet services compared to other countries.”
In contrary, we are at the apex in consideration of VAT providing for the service, he stressed.
He said: “48 percent of the country people are out of internet service, and now the government further increased the rate. The high tax rate will further setback citizens from pursuing internet services.”
It will create discrimination amongst citizens, he continued.
Translated by Afsar Munna
