Bangladesh’s telecom sector, contributing just 1% to GDP but 5% to total tax revenue, faces unsustainable fiscal pressure due to high taxation and complex regulations. Average Revenue Per User (ARPU) has fallen 56% over a decade to $1.3—among the world’s lowest—while mobile users bear a 39% total tax burden, including 18% VAT, 20% supplementary duty, and 1% surcharge. Telecom operators pay 40–45% corporate tax, versus lower rates in India, Nepal, and Sri Lanka, and face 2% turnover tax—higher than tobacco’s 1%. Spectrum costs remain among the highest globally, and SIM/eSIM taxes have risen, risking digital exclusion for low-income users. Despite 45,000 towers, only 22,000 are independently managed due to restrictive policies. With 18 fragmented licences and unpredictable regulatory practices, investor confidence is low. Reforming the tax regime, simplifying licensing, promoting infrastructure sharing, and aligning with regional norms are crucial to unlock digital growth, rural inclusion, and FDI potential.
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