Supplementary Duty on Mobile Services Set to Rise Again

The supplementary duty on mobile phone services is likely to increase again. According to sources, the National Board of Revenue (NBR) is planning to propose an additional 3% supplementary duty on top of the existing rate. However, no statutory regulatory order (SRO) had been issued at the time of this report.

An NBR senior official, speaking anonymously, confirmed to the media that there are plans to increase the cost of mobile phone calls and cellular internet usage. According to them, this supplementary duty is expected to boost government revenue by BDT 10 billion.

If implemented, the total tax—including VAT, supplementary duty, and surcharge—would rise from the current 39% to 42%, market analysts predict. Technology sector representatives have cautioned the interim government against such a move, warning that they would take to the streets and call for strikes if this proposal goes ahead.

Expressing strong opposition, Mohiuddin Ahmed, President of the Bangladesh Mobile Phone Users Association, said, “The fascist spirit has overtaken the NBR, which is why they are unjustly imposing additional supplementary duty on consumers. They must abandon such decisions, or we will be compelled to mobilize protests involving consumers, civil society, and people from all political affiliations.”

Similarly, Fahim Mashroor, CEO of Bdjobs and Coordinator of Voice for Reform, criticized the plan, remarking, “It seems the internet is being treated as a luxury or something harmful like tobacco.”

Mahtab Uddin Ahmed, former Managing Director of Robi, commented, “This is routine practice for the NBR. Since telecom operators don’t evade taxes, they are pressured for revenue assurance. No other sector contributes revenue as easily as this one.”

Robi’s Chief Corporate and Regulatory Affairs Officer, Shahed Alam, expressed surprise, stating, “This decision, coming so early in the budget cycle, is unprecedented. It should not be increased at all.”

Taimur Rahman, Chief Corporate and Regulatory Affairs Officer of Banglalink, observed that increasing the tax might reduce mobile usage, which could lead to a further drop in revenue.

Discussions with mobile operators revealed that currently, for every BDT 100 spent on recharge or internet usage, consumers pay BDT 39 in taxes, leaving them with BDT 61 to use. If the new tax rate is implemented, BDT 42 will be deducted as tax, reducing the usable amount to BDT 58.