Mobile phone prices likely to decline
Existing duty exemption facilities on raw materials used in mobile phone manufacturing have been extended until 30 June, 2030, to encourage local production and boost export growth.
The proposed national budget has introduced a set of fiscal measures expected to reduce the cost of locally manufactured mobile handsets and lower mobile telecommunication service expenses for consumers.
While unveiling the national budget for fiscal year (FY) 2026–27 in parliament today (11 June), Finance Minister Amir Khosru Mahmud Chowdhury proposed reducing the Advance Income Tax (AIT) on the import of 22 raw materials used in local mobile phone manufacturing from 5% and 2% to 1%. The move is aimed at lowering production costs and supporting the production of affordable handsets.
Existing duty exemption facilities on raw materials used in mobile phone manufacturing have been extended until 30 June, 2030, to encourage local production and boost export growth.
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Conditional VAT exemptions for mobile phone manufacturing and assembly have also been extended until the same date.
On the service side, the withholding tax rate in the mobile network services sector has been reduced from 12% to 10%.
The budget also proposes the complete withdrawal of the 20% withholding tax on revenue-sharing payments, licence fees, and charges received by the Bangladesh Telecommunication Regulatory Commission (BTRC).
In addition, the Tk300 specific tax previously imposed on each mobile SIM card has been fully withdrawn to make mobile services more affordable and accessible.
According to budget documents, these combined reforms are expected to improve cost efficiency across the mobile ecosystem and help reduce the overall financial burden on consumers.
