Government to reduce taxes on mobile recharge: PM's adviser

The government is taking steps to reduce taxes on mobile phone recharges, as the current deduction of Tk 38 on every Tk 100 recharge is unjustified, Prime Minister's Adviser on Post, Telecommunications and IT Rehan Asif Asad has said.

Speaking at a seminar on telecom policy at a hotel in Tejgaon, capital, on Saturday, April 25, the adviser said the government directly collects Tk 38 in taxes from poor people on a Tk 100 mobile recharge, which is not right.

He said the government has already started working on reducing the tax and VAT imposed on telecom services.

The adviser also said the government aims to bring 90 per cent of the country's population under 5G services and ensure broadband internet with a minimum speed of 100 MBPS.

Acknowledging service deficiencies, Asad admitted that consumers are not receiving the expected service quality despite paying for mobile services, calling it a failure on the government's part.

In the 2024-25 budget, the supplementary duty on mobile phone services was increased from 15 per cent to 20 per cent, along with an 18 per cent value-added tax (VAT) and a 1 per cent surcharge. Including SIM taxes, revenue sharing, and other levies, the government used to take Tk 54.50 on every Tk 100 recharge.

However, just six months later, in January this year, the interim government again increased the financial burden on 1.887 crore SIM card users by raising the supplementary duty by 3 percentage points. The National Board of Revenue (NBR) decided to increase the supplementary duty from 20 per cent to 23 per cent, resulting in customers paying over Tk 56 in taxes on every Tk 100 recharge.