Tech leaders slam budget for burdening phone users while rewarding industry

Technology entrepreneurs and telecom experts have criticised the FY2026-27 budget, saying it offers generous tax incentives to cellular phone companies and a handful of businesses while providing little relief for ordinary consumers in the ICT sector.

The remarks came at a seminar titled "Impact of the Budget on the Telecom and Technology Sector," organised by Voice for Reform at the BDBL Building in Dhaka today (1 July). The discussion focused on the implications of the recently passed Finance Act 2026 and the FY2026-27 budget.

Presenting the keynote paper, Tipap (Technology Industry Policy Advocacy Platform) Convener and Bdjobs founder Fahim Mashroor said the budget had reduced SIM-related taxes, a move that would primarily benefit mobile network operators. However, he criticised the steep increase in taxes on smartphones, arguing that it would disproportionately hurt consumers.

"Smartphones now face an effective tax burden of around 62%, which is more than six times higher than that on laptops. This is illogical when smartphones have become the primary computing device for most Bangladeshis," Mashroor said.

He said import taxes on laptops, computers, printers and monitors have been reduced by 50-70%, a move that will benefit consumers.

He argued that the policy primarily benefits a handful of foreign-owned smartphone assembly companies while making digital access more expensive for consumers. He also criticised the continuation of a 20% supplementary duty and 15% VAT on mobile internet services, saying the tax burden would hinder efforts to bridge the country's digital divide.

Telecom analyst Mahtab Uddin Ahmed said telecom operators had successfully lobbied for tax reductions on recharge schemes and advance income tax, but those benefits would largely boost corporate profits rather than reduce costs for subscribers.

"Consumers still pay more than Tk40 in taxes for every Tk100 worth of airtime, one of the highest effective tax burdens in Asia," he said.

ShareTrip CEO Sadia Haque welcomed several incentives for startups in the new budget but urged the National Board of Revenue (NBR) to ensure that emerging companies can easily access those benefits.

Dream71 CEO Rashad Kabir called for extending the software industry's income tax exemption beyond 2027, warning that the sector would require substantial investment to remain competitive in the era of artificial intelligence.

"Banks provide very limited financing to software companies. Retained earnings remain the primary source of investment, making continued tax support crucial for the industry's growth," he said.

Several ICT journalists and technology entrepreneurs also participated in the discussion, calling for a more consumer-centric tax policy to accelerate Bangladesh's digital transformation.