For the first time, the National Board of Revenue (NBR) has imposed a 10% supplementary duty on broadband services, leading to a minimum additional cost of BDT 77 for a monthly bill of BDT 500. Additionally, a 3% hike in supplementary duty on mobile services will require users to pay over BDT 56 in taxes for every BDT 100 recharge.
An estimate of potential broadband expenses reveals that upstream costs will rise significantly. Previously, BDT 5,000 was paid per lakh, but this figure will now jump to BDT 18,250 due to a combined effect of a 7.5% VAT and the 10% supplementary duty. The ultimate burden will fall on end users.
Unsurprisingly, this decision has triggered frustration across stakeholders, including consumers, businesses, and technology experts. The Bangladesh Mobile Phone Consumers Association has announced a human chain protest in front of the National Press Club on Sunday, along with plans for a siege at the NBR office. Members of the tech industry are expressing discontent on forums, with one tech advocate saying, “There is no solution unless people take to the streets.”
Social media platforms, including Facebook, Twitter, and LinkedIn, are buzzing with criticism. Mubin Mahmud Chowdhury, Managing Director of Technology Limited, wrote on LinkedIn, “NBR must abandon its habit of taking the easy route and focus on sustainable solutions. Yunus Sarkar must apply pressure on them to step out of their comfort zone, where they are used to applying a ‘paracetamol approach’ to every problem.”
Fahim Mashroor, former BASIS president, humorously remarked, “A supplementary duty of 30% exists for alcohol bars and restaurants, while telephone services are taxed at 23%. I demand equality—30% supplementary duty on mobile phones and internet too, as the government seems to think using them is harmful to society!”
On Facebook, Shafayet Riyad commented, “The previous government caused hardship by raising prices of goods multiple times with statements like, ‘No one is starving in Bangladesh.’ They’re gone now, and corruption should no longer affect reserves or fuel illicit money transfers. So why introduce this VAT that will only increase public unrest?”
President of the Bangladesh Mobile Phone Consumers Association, Md. Mohiuddin Ahmed, stated, “Many people’s incomes have dropped since August 5. Even now, a significant portion of the population lacks mobile phone access. This tax will increase the burden on marginalized groups, further alienating them from mobile services and reducing broadband users. It’s a hasty decision. If it is not withdrawn by Sunday (January 12), we will escalate our protests.”
Alvi Nizam Nafi, CEO of Bimafai, argued, “This price hike will reduce government tax revenue (considering growth projections) and hinder national development. Lowering taxes would yield better results.”
Protestor Ashik Islam, a student, noted, “Broadband internet is taxed from 0% to 10% in one leap, while the focus should have been on lowering prices to make internet accessible in rural areas, spreading technology beyond urban centers.”
Interestingly, broadband internet business leaders have remained relatively silent. Anonymous ISP operators have stated that they previously absorbed VAT within service fees, offering package discounts to customers. But with the 10% tax, they can no longer sustain the burden. For instance, customers paying BDT 500 monthly will now need to pay BDT 577.
Top ISP leaders believe that merely imposing higher taxes will not suffice without equitable implementation, which may exacerbate operational disparities and reduce service quality. They emphasized that ISPs should incorporate the additional VAT into customer bills and ensure its proper deposit to government accounts. Without such measures, the initiative could backfire, reducing licensed ISP compliance and increasing reliance on unregulated operators.
Saiful Islam Siddique, former Senior Vice President of ISPAB and current Vice President of IIGAB, stated, “Internet is not a luxury commodity, especially broadband internet, which fuels the digital economy. As such, it should be exempt from VAT and taxes altogether. Otherwise, this will hinder internet-dependent industries like software, outsourcing, and business automation. Broadband internet must be declared a social business, per the Chief Advisor’s plan. Stakeholders must unite and push for this correction; otherwise, the promising ICT sector will falter, and small entrepreneurs will stagnate.”
