Duty Cut Drives Down Mobile Phone Prices
The National Board of Revenue (NBR) has issued a gazette notification reducing customs duty (CD) on mobile phone imports, a move expected to lower handset prices at the consumer level. As a result, the price of each imported mobile phone priced above BDT 30,000 is likely to fall by around BDT 5,500. Similarly, the price of each locally assembled mobile phone in the same price range is expected to decrease by approximately BDT 1,500, according to NBR Public Relations Officer Md Al Amin Sheikh.
The notification, issued on Tuesday, January 13, aims to keep mobile phone prices within the purchasing capacity of consumers. Under the new order, customs duty on mobile phone imports has been reduced from 25 percent to 10 percent, effectively cutting the applicable import duty by 60 percent.
To ensure that local mobile phone assemblers are not placed at a competitive disadvantage due to the duty reduction on imported handsets, the government has also lowered customs duty on the import of components by domestic assembling companies from 10 percent to 5 percent. This measure has resulted in a 50 percent reduction in import duty on such components.
NBR sources said the significant reduction in duties on mobile phone imports and on components for the assembly industry will help keep the prices of all types of mobile phones within the purchasing power of the general public. This, in turn, will enable citizens to access digital services more easily. The government, they added, will continue to take such initiatives to ensure mobile phone prices remain affordable for consumers.
DBTech/JNO/EK/OR
