Mobile Manufacturing Policy : MIOB Seeks VAT, Customs Extension to 2035
The Bangladesh Mobile Phone Industry Owners Association (MIOB) has proposed extending the validity of customs and VAT benefits until 2035. The organization argues that this extension is necessary to ensure long-term investment security and to address challenges posed by the grey market (illegal market).
The proposal was made during a pre-budget discussion held on Monday (27 April) afternoon at the NBR building in Agargaon. On behalf of the organization, the demands were presented by MIOB Zakeria Shahid. Also present at the time were the organization’s General Secretary Saifuddin Tipu, Treasurer Imam Uddin, and member Mohammad Zahirul Islam.
In the proposals presented before NBR Chairman Md. Abdur Rahman Khan, MIOB recommended including data cable manufacturing materials—such as copper, PVC, and USB connectors—under duty concession benefits to strengthen backward linkage. The organization also demanded replacing the current 7.5% business-level VAT with VAT based solely on actual value addition. It claims this would further reduce mobile phone prices for consumers.
To lower production costs, MIOB proposed reducing advance income tax on mobile component imports from 5 percent to 2 percent. It also recommended special tax benefits for companies that locally assemble 100% motherboards.
The organization stated that currently only 30–40% of production capacity in local factories is being utilized. It warned that without extending policy support, large-scale investments could become at risk and the country may once again become import-dependent.
DBTech/JNO/EK/OR
