Mobile phone prices likely to fall as NBR slashes import taxes by 30%

Amidst the stand-off between traders and the government over the implementation of the National Equipment Identity Register (NEIR), the government has reduced import taxes on handsets by approximately 30% to lower the price of imported devices.

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Bite-Sized: What to know as mobile phone prices are set to fall after NBR's duty cut

The National Board of Revenue (NBR) said the move aimed at keeping devices affordable while supporting the local manufacturing industry.

In two separate notifications issued today (13 January), the NBR reduced the overall import tax on finished mobile phone handsets from about 62% to 43.43%. At the same time, import taxes on components used by local handset manufacturers were lowered from around 17% to nearly 12%.

According to a NBR press release, the revised duty structure is expected to reduce the price of each imported finished mobile phone priced above Tk30,000 by around Tk5,500.

Under the new orders, import duty on handsets has been cut from 25% to 10%, while duty on components for local manufacturers has been reduced from 10% to 5%.

The revenue authority said the decision was made to ensure mobile phones remain affordable for the general public and to facilitate wider access to digital services.

It added that the dual measures were designed to strike a balance between consumer interests and the sustainability of the domestic mobile phone assembling industry.

The NBR reaffirmed that the government's efforts to keep mobile phone prices within consumers' reach would continue as part of its broader goal of promoting digital inclusion and expanding access to technology nationwide.

The tax cuts come amid the rollout of the NEIR, a regulatory initiative introduced under the supervision of the Bangladesh Telecommunication Regulatory Commission (BTRC) to curb the use and trade of illegal, counterfeit, and unregistered mobile phones.

Under NEIR, every mobile handset must be registered using its unique International Mobile Equipment Identity (IMEI) number before it can access cellular networks. Authorities say the platform will help block stolen or smuggled devices, reduce grey market imports, improve network security, and ensure a level playing field for compliant importers and manufacturers.

However, the implementation of NEIR has sparked protests by mobile phone traders across the country, particularly small and medium retailers. Protesters argue that the system could disrupt business and impose additional financial and administrative burdens.

Traders demanded a longer transition period, clearer guidelines, amnesty for existing stock, and stronger public awareness campaigns before full enforcement of the system.