The proposed national budget for the fiscal year 2024-25 has increased supplementary taxes on mobile phone internet usage. This will result in higher internet expenses for consumers. The increased tax will be effective from Thursday afternoon.
Previously, consumers had to pay a 15% VAT and a 15% supplementary charge on mobile internet. Now, these have been increased by an additional 5%. Along with this, consumers will also have to pay a 1% surcharge.
With the new supplementary charge increase to 5%, a consumer will now have to pay Tk 30.65 in VAT and supplementary charges for a Tk 100 internet package. They will be able to use the remaining Tk 69.35 for internet usage.
Although call rates, internet package prices, and SIM card costs have increased, the proposed national budget still maintains duty-free import facilities for mobile phone production materials for another two years. Domestic production companies will continue to receive support.
According to the proposed budget, the effectiveness deadline of the existing notification aimed at providing duty-free import facilities for materials used in mobile phone production is extended until June 30, 2024. It is recommended to extend the effectiveness deadline of the notification until June 30, 2026, to provide support to domestic production companies.
Currently, 17 companies are producing mobile phones in Bangladesh. These companies claim they can meet nearly 90% of the current demand in the country.