Telecom industry burdened by higher supplementary duty: AMTOB

The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has expressed concerns over the government’s recent decision to increase the supplementary duty on mobile services by an additional 5 per cent, raising the total from 15 per cent to 20 per cent.

This move is anticipated to create significant challenges for both the telecom industry and mobile subscribers, according to an AMTOB statement on Thursday, reports UNB.

This increase in duty will elevate the cost of voice and internet services, placing additional financial pressure on users, particularly those from marginalised communities. The organisation warned that this could potentially lead to decreased mobile service usage, which would negatively impact businesses and reduce government revenue.

Additionally, the statement said the higher VAT on SIM cards is expected to discourage new users, further slowing the growth of mobile connections in a country where 45 per cent of the population remains unconnected.

AMTOB stressed that these measures will hinder the overall digitisation of the country, adversely affecting GDP growth and contradicting the Smart Bangladesh Vision of the Government.

In light of these concerns, AMTOB urged the government to reconsider these duties and take into account their earlier telecom budget recommendations to support the industry and ensure continued progress towards a digital Bangladesh.