Mobile phone import tax slashed from 61% to 43.4%

The government has reduced taxes on both imported and locally manufactured mobile phones to ease the financial burden on consumers and producers.

Chief Adviser’s Press Secretary Shafiqul Alam confirmed the decision at a press briefing held at the Foreign Service Academy following Thursday’s Advisory Council meeting.

He said the customs duty on imported mobile phones had been cut from 25% to 10%, reducing the overall tax incidence from 61.8% to 43.4%. 

For locally manufactured phones, the tax burden will also drop significantly.

“Those who manufacture mobile phones in Bangladesh, previously faced a total tax incidence of around 17.2%, including 10% customs duty. Now, this customs duty has been reduced from 10% to 5%,” he added.

When asked whether the reduction to 43.4% import tax is sufficient to make mobile technology more affordable, he responded that the government had undertaken extensive consultations before finalising the decision. 

“Bangladesh has one of the lowest tax-to-GDP ratios globally, so we cannot indiscriminately reduce taxes. This measure balances the need to encourage domestic manufacturing while maintaining fiscal stability,” he said.

The government anticipates a revenue loss of around Tk30 crore due to the tax cuts. Alternative revenue sources will be identified to offset this shortfall, ensuring that both domestic manufacturers and importers are not unduly affected.