The expense of mobile calls and internet usage is expected to rise again as the government has approved a 3% increase in the supplementary duty (SD) on these services. An official notification regarding this decision is anticipated shortly.
Earlier, during the Awami League-led government, the SD on mobile phone services was increased from 15% to 20% in the 2024-25 fiscal year budget.
The interim government now plans to raise it further to 23%.
At present, for every 100 taka mobile recharge, users pay 28.1 taka in supplementary duty, VAT, and surcharge, 6.1 taka in revenue share and minimum tax, and 20.4 taka in indirect tax. This totals 54.6 taka in taxes.
With the proposed 3% increase in supplementary tax, the total tax will rise to 56.3 taka. Of this, 29.8 taka will account for supplementary tax, VAT, and surcharge, 6.1 taka for revenue share and minimum tax, and 20.4 taka for indirect tax.
As a result, a customer recharging 100 taka will only have 43.7 taka available for actual usage.
The increased tax burden is already affecting mobile and internet usage. Many users are reducing their data consumption, and the number of internet subscriptions is declining.
According to the Bangladesh Telecommunication Regulatory Commission (BTRC), the number of mobile phone subscribers decreased to 188.7 million in November, a reduction of 7.3 million since June.
Likewise, mobile internet users fell by 9.7 million to 132.8 million during the same period.
Md. Mohiuddin Ahmed, President of the Bangladesh Mobile Consumers Association, has strongly criticized the tax hike, calling it discriminatory.
He accused the National Board of Revenue (NBR) of being influenced by a "fascist government spirit" and pointed out that Bangladesh already has one of the highest VAT rates globally, despite nearly half the population lacking internet access.
He warned that the increased tax would push more people away from internet services and exacerbate social inequality.
Ahmed condemned the decision as unreasonable and unacceptable, especially given the sacrifices made by students and citizens to demand an accountable democracy and a service-oriented state.
He accused the government and the NBR of neglecting social responsibility by placing an undue financial burden on citizens to fund the state, describing their actions as "stubborn, irrational, and fascist." He called on the government to reverse this decision.