Call not to impose additional tax burden on mobile phone customers

The Tele Consumers Association of Bangladesh (TKAB) has urged the interim government not to burden the people with additional expenses by increasing taxes on internet and mobile phone services in a new way.

The organization made this call in a press release signed by TKAB president Murshidul Haque Bidyut sent to the media on Thursday.

In the press release, it is said on behalf of the organization, the interim government may impose a new 3 percent supplementary duty on mobile phone services. This news of increase in supplementary duty has already created a lot of anxiety among the customers.

Due to the ease of revenue collection, the ousted Awami League government used to impose new taxes in this sector every year. Ignoring the demands of the people, they increased the supplementary duty on mobile phone services by 5 percent to 20 percent in the budget of the fiscal year 2024-25. Currently, a total of 39 percent tax is levied on mobile internet and talktime together with supplementary duties and surcharges. A further 3 per cent increase would raise it to 42 per cent.

A customer effectively receives a service of Rs 61 by paying an indirect tax of Rs 39 against a mobile recharge of Rs 100. After the tax hike, customers will get Rs 58 service against Rs 100 recharge. In terms of customs, Bangladesh is the highest in South Asia, but in terms of mobile internet speed and service, the position is the lowest. Taking advantage of the increase in government tariffs, operators increase the price of mobile internet and talktime packages as they wish without increasing the quality of service. In fact, the customers have to bear the full responsibility of the increase in duty.

According to TICAB, mobile internet users are already decreasing due to price increase. According to BTRC, compared to last October 2024 (12 crore 34 lakh), the number of customers decreased by 44 lakh in November 2024 (11 crore 90 lakh). Therefore, customers may reduce the use of mobile internet due to the new cost increase. As a result, the government may not be able to meet the target of imposing 3 percent supplementary duty with the aim of collecting additional revenue of about 1000 crore rupees.

According to the organization, mobile phone service is now an essential accessory of the public. Just like the increase in the cost of daily goods, the increase in the cost of mobile phone services has a huge impact on the life of common people. During the previous government, the mobile phone operators have increased the prices of internet and talktime packages to increase the people’s appetite. We had hoped that the interim government formed after the August 5 student revolution would provide relief to consumers by reducing the cost of mobile phone services.

But in view of the situation, it seems that they also prefer to follow the footsteps of the previous government. It should not be forgotten that most of the 18 crore active SIM subscribers in the country belong to the lower and lower middle classes. To survive in the battle of life, they have to spend every money earned with blood and sweat very carefully.

TKAB hopes that the interim government, demanded by the people in the student-mob uprising, will refrain from drastic decisions like increasing the supplementary tariff on mobile phone services to reduce the cost of living of the people.

(Dhakatimes/January 9/RH/AJ)




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