The government has significantly reduced customs duty on mobile phone imports, cutting it from 25 percent to 10 percent, following a decision taken at a meeting of the Advisory Council on Thursday.

The move represents a reduction of nearly 60 percent and is aimed at facilitating the full implementation of the National Equipment Identity Register (NEIR) while easing pressure on consumers and legitimate businesses.

Under the new decision, customs duty for locally manufactured mobile handsets has also been lowered—from 10 percent to 5 percent—marking a 50 percent reduction.

The government believes the measures will encourage both lawful imports and domestic production, ultimately bringing mobile phone prices down to a more affordable level for consumers, according to a press release issued from Posts, Telecommunication and ICT Ministry.

Compared to other imported goods such as vehicles, electrical appliances and computers, the customs duty on mobile handsets has now been reduced to a notably lower level.

In addition, mobile phones already imported by traders within the timeframe set by the Bangladesh Telecommunication Regulatory Commission (BTRC) will be allowed to be approved under the NEIR system as “stock-lot” items without any additional duty.

This effectively regularises handsets currently available in the market and fulfils long-standing demands from legitimate importers and traders.

Although there had been differing views within policymaking circles—particularly arguments that import duty reductions could undermine incentives for local manufacturing—the government ultimately decided to lower the duty by 60 percent in light of prevailing market realities.

Officials acknowledged that the decision could result in a revenue shortfall of around Tk 35 crore in the current fiscal year.

The decision comes amid heightened public concern following the killing of Osman Hadi, in which investigators reportedly recovered 17 active SIM cards linked to the accused.

In this context, law enforcement agencies have strongly emphasised the need for strict implementation of NEIR and a reduction in the number of SIM cards permitted per individual.

The government had earlier pledged that NEIR would only be enforced once import duties were rationalised. With Thursday’s cabinet decision, officials said that commitment has now been honoured and that the government is fully prepared to operationalise NEIR.

Special provisions have been introduced for expatriates on humanitarian grounds. According to the decision, mobile phones used by expatriates will not be blocked for three months after their return to Bangladesh.

Those staying in the country for less than three months will not be required to register their devices, while those remaining longer will need to complete registration after the grace period.

Similarly, for general consumers, no mobile handset will be blocked over the next three months, while traders’ existing stock will be regularised. For this purpose, traders will only need to provide BTRC with a list of valid handset identification numbers.

In this context, the government stated that all reasonable and legitimate demands have been accepted, duties have been reduced and even illegally imported phones have been given an opportunity to be brought under a lawful framework.

However, authorities issued a stern warning against violence and vandalism. Those involved in attacks and destruction at the BTRC premises, officials said, are not above the law and will be identified and brought to justice through due legal process.

At the same time, strict operations will be launched at all land ports and airports to prevent illegal importation of mobile phones.

Officials stressed that NEIR is critical not only for digital security but also for ensuring a free and fair election environment.

To prevent misuse of SIM cards, databases and the NEIR system, stringent protective provisions have been incorporated into the new Telecommunications Ordinance, with severe penalties for any abuse.

The government also warned that if necessary, joint operations may be carried out at wholesale markets and customs houses across the country to seize illegally imported and sold mobile handsets. All concerned parties have been urged to comply with the law to avoid punitive action.