The cost of mobile phone services, including voice calls and internet usage, is set to rise once again in Bangladesh. The National Board of Revenue (NBR) has decided to increase the supplementary duty on mobile phone services by an additional 3%. As a result, customers will now have to pay over 56 Taka in taxes for a 100 Taka mobile recharge, while the government's revenue collection is expected to increase by 1,000 crore Taka.

According to NBR sources, the new 3% supplementary duty will be added to the existing 20% supplementary duty on mobile services. This decision has already been approved by the interim government and both relevant ministries, and the official notification is awaited.

Previously, in the 2024-25 fiscal budget, the supplementary duty on mobile services was increased from 15% to 20%. As a result, for every 100 Taka recharge, customers were paying a total of 28.10 Taka in supplementary duty, VAT, and surcharge. Additionally, 6.10 Taka is deducted for revenue share and minimum tax, while 20.40 Taka is deducted for indirect taxes. This means customers were paying a total of 54.60 Taka in taxes for a 100 Taka recharge.

With the new 3% supplementary duty increase, customers will now pay a total of 56.30 Taka in taxes for a 100 Taka recharge. Of this, 29.80 Taka will be for supplementary duty, VAT, and surcharge, 6.10 Taka for revenue share and minimum tax, and 20.40 Taka for indirect taxes. Consequently, after this tax increase, customers will effectively be left with only 4 3.70 Taka to use from a 100 Taka recharge.

The increase in taxes on mobile phone services has led to a reduction in the number of mobile internet users in the country. Many users are cutting back on data usage, and instead of progressing in digital communication, the people of Bangladesh are moving in the opposite direction.

According to the latest data from the Bangladesh Telecommunication Regulatory Commission (BTRC), the number of mobile phone subscribers in November was 188.7 million, which is 7.3 million fewer than in June. Similarly, the number of mobile internet users decreased by 9.7 million, dropping to 132.8 million.

The recent decision to increase the supplementary duty on mobile phone services has raised concerns among customer rights groups. Mohammad Mohiuddin Ahmed, president of the Bangladesh Mobile Phone Users Association, expressed worry that Bangladesh is already at the bottom in terms of internet services compared to other countries, but is among the highest in VAT rates. He warned that this new high tax rate could discourage citizens from using internet services, further deepening the digital divide in the country.