Adviser highlights five priorities including telecom tax reduction

Prime Minister's Adviser for Posts, Telecommunications and Information Technology, and Science and Technology, Rehan Asif Asad, has outlined five government priorities: reducing the tax burden in the telecommunications sector, improving mobile and broadband service quality, building robust digital infrastructure, creating AI-skilled manpower, and expanding electronics production.

He made the remarks as the chief guest at a discussion titled 'Advancing Bangladesh's Digital Future: Policy Priorities for Innovation, Investment and Tech-Driven Growth' organised by the American Chamber of Commerce in Bangladesh (AmCham) at a hotel in Dhaka on Sunday, August 9.

The adviser said the effective tax burden in Bangladesh's telecom sector is 51.56 percent, compared to the global average of 22-27 percent. Therefore, a consistent and forward-looking policy framework under a five-year tax structure is needed in this sector. He also raised the issue of withdrawing the SIM tax.

He said while Bangladesh ranks seventh globally in terms of subscriber numbers, the country still lags in mobile and broadband service quality. To improve this situation, service quality and capacity must be enhanced.

Regarding building a strong digital public infrastructure, Rehan Asif Asad outlined plans for the 'One Citizen, One Identity, One Digital Wallet' initiative, to be modelled on Estonia's X-Road platform. There are also plans to link each citizen's digital identity with bank accounts and the National Board of Revenue.

Emphasising the creation of skilled manpower in AI, cybersecurity and data, he said Bangladesh produces approximately 23,000 to 30,000 graduates in engineering and science each year. Alongside skilling them in these areas, the school curriculum will also incorporate relevant subjects.

Highlighting the need for incentives similar to those in the garment sector to expand electronics production, he cited Vietnam's example, where consumer electronics exports grew from $1 billion to $217 billion in a decade.

Citing research by the UN and the International Telecommunication Union, the adviser said a 10 percent expansion in broadband penetration could increase GDP by approximately 1 percent.

AmCham President and Mastercard Vice President Syed Mohammad Kamal thanked the government for approving the Personal Data Protection Act. He welcomed tax exemptions for freelancers and content creators, and duty benefits on computers, digital devices and semiconductor-related materials.

He called for facilitating foreign capital inflows and international transactions for tech companies and startups, reconsidering the decision to increase turnover tax for internet service providers, and further engaging foreign investors in the policy-making process.

The dialogue discussed the digital economy, digital infrastructure, AI, innovation, skills development, and government-industry partnerships. Proposals were made for automated ticketing in metro and toll systems, launching Bangla QR for international payment networks, the 'One Citizen, One Wallet' initiative, startup sandbox, public cloud usage, the formation of a National Information Management Authority, digital signatures and e-contracts, and strengthening national cybersecurity.

On these issues, Rehan Asif Asad said a pilot automated toll collection system using radio frequency identification technology is already operational. Bangladesh Bank has agreed to open Bangla QR for international fund flows. The 'One Citizen, One Identity' platform will be open to both domestic and international payment networks. The startup sandbox provisions will be refined in consultation with the startup community.

Identifying national cybersecurity as an immediate priority, he said work on formulating a national AI policy, involving a joint team of government, private sector, academics and researchers, will begin in the fourth quarter of this year.

The adviser also stressed enhancing submarine cable capacity. He said the current submarine cable capacity is 6 terabytes, while maximum national demand has reached 12 terabytes, with data traffic doubling every two years. Noting that it takes two to three years to lay new submarine cables, he stressed the need to rapidly increase capacity to ensure digital sovereignty.