58% Mobile Service Tax Under Review

Posts, Telecommunications, ICT, Science and Technology Minister Faqir Mahbub Anam has said the government will review the existing 20 percent supplementary duty (SD) imposed on mobile phone services and take necessary action following discussions with the finance minister.

He made the remarks on Tuesday while responding to a supplementary question from National Citizen Party (NCP) Member of Parliament Abdullah Al Amin during the question-and-answer session in the National Parliament. The session was chaired by Speaker Hafiz Uddin Ahmed.

During the discussion, Abdullah Al Amin argued that mobile phone services are no longer a luxury but have become an essential part of everyday life. He noted that a significant portion of a customer's mobile recharge amount is deducted through various taxes and charges.

According to the lawmaker, when a customer recharges Tk 100, nearly Tk 39 is deducted directly as taxes, while additional indirect charges further reduce the value of services received. As a result, consumers effectively receive services worth only around Tk 56 to Tk 58.

He asked whether the government was considering reducing or withdrawing the existing 20 percent supplementary duty on mobile services.

In response, Minister Fakir Mahbub Anam said the issue would be discussed with Finance Minister Amir Khasru Mahmud Chowdhury. He added that any future action would be taken in line with the government's policy decision.

The taxation of mobile services has long been a subject of discussion among consumers, telecom operators, and industry stakeholders. Sector insiders believe that lowering the tax burden could encourage greater adoption of digital services and provide direct financial relief to mobile users.

//DBTech/IH/MI/OR//