Obsession with taxing the mobile telecom sector

Obsession with taxing the mobile telecom sector

02 Jul, 2019

There is an obsession in Bangladesh with taxing mobile telecom services. The resulting burden on the sector trickles down to the consumer, hampers growth and draws the country further away from the goals of Digital Bangladesh.

Mobile data services are a luxury

As per the UN Broadband Commission, entry-level broadband services should be made affordable in developing countries at less than two percent of monthly gross national income (GNI) per capita by 2025.

It is, therefore, no surprise that LIRNEasia’s nationally-representative AfterAccess survey found that only 13 percent of Bangladeshis (between 15-65 years) had ever used the internet.

One-third of these internet users (between 15-65 years) cited cost of data as a barrier to further use.

SIM, smartphone and service taxes will discourage mobile use and limit choice