Telecom operators said they could reduce mobile phone usage costs by 21 percent if the government withdraws the current 20 percent supplementary duty (SD) and 1.0 percent surcharge, calling them irrational.

As expanding the tax net seems to be a difficult task for the National Board of Revenue, the government has opted for an easy tax solution by imposing an additional 5 percent SD, making it 20 percent, and a Tk 100 SIM tax in the proposed budget, they alleged.

However, they agreed that a 15 per cent VAT should remain as it is paid by all.

Industry leaders warned that the government would not likely achieve targeted revenue from telecom services as these new taxes are expected to impact mobile consumers and the telecommunications industry negatively.

“The imposition of additional supplementary duties and SIM taxes will adversely impact the telecom industry and our customers,” said Taimur Rahman, Chief Corporate and Regulatory Affairs Officer at Banglalink, at a post-budget press meet at the Association of Mobile Telecom Operators of Bangladesh (AMTOB) Secretariat in Dhaka city’s Banani.

With the industry already facing a period of de-growth, he said these new taxes add a financial burden that could hinder overall GDP growth and increase costs for customers who rely on affordable telecom services for their daily needs.

Mr Rahman emphasised that a significant portion of the digital economy relies on the telecom sector’s connectivity and infrastructure. “Imposing additional financial constraints on this sector risks stalling the progress needed for a digitally empowered Smart Bangladesh,” he added.

“We urge policymakers to consider the broader economic implications of these taxes,” he said.

Shahed Alam, Chief Corporate and Regulatory Affairs Officer of Robi Axiata, Hans Martin Henrichsen, Chief Corporate Affairs Officer of Grameenphone and Lt Col Mohammad Zulfikar (Retd), Secretary General of AMTOB, among others, were present.