20% Supplementary Duty on Mobile Services Criticized

The Bangladesh Telecommunication Regulatory Commission (BTRC) has reduced broadband prices by Tk 100, lowering monthly fees for 5 Mbps, 10 Mbps, and 20 Mbps packages to Tk 400, Tk 700, and Tk 1,100 respectively.

In the first seven months of FY 2024–25, Bangladesh’s budget deficit surged by 73.04% compared to the same period last year, reaching Tk 384.93 billion. Revenue collection stagnated, with tax revenue at just over 40% of the annual target, primarily from indirect taxes. Total expenditure stood at Tk 2.746 trillion against Tk 2.362 trillion in revenue.

The BTRC's draft telecom policy proposes consolidating over 20 licence types into three—NICSP, ICSP, and ANSP—aiming to simplify regulations and attract foreign investment. However, experts warn it may entrench monopolies, as it permits up to 100% foreign ownership in ANSP, 70% in NICSP, and 49% in ICSP without limiting cross-ownership, enabling dominant players like Axiata, Telenor, and Veon to hold stakes across all categories.

The National Cyber Security Agency (NCSA) has directed the Bangladesh Telecommunication Regulatory Commission (BTRC) to block all websites and social media handles linked to the Awami League and its affiliated bodies, citing the Cyber Security Ordinance, 2025.

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.

In a major reform move, the Bangladesh government has officially dissolved the National Board of Revenue (NBR) through an ordinance, replacing it with two new divisions—Revenue Policy and Revenue Administration—under the Ministry of Finance. This restructuring, enacted late Monday night with presidential approval