Broadband internet to be costlier as 10pc duty imposed 

The government has imposed a 10 per cent supplementary duty on broadband internet, in addition to a 3 per cent hike in the supplementary duty on mobile talktime and internet packages. 

According to internet service providers (ISPs), this is the first time the broadband service has been brought under supplementary duty. Now, a monthly bill of Tk 500 will increase by an additional Tk 50 due to the supplementary duty.

Midway through the current 2024-25 fiscal year, the government has raised the value-added tax (VAT) and supplementary duty on over a hundred goods and services. In this regard, two ordinances – the value-added tax and supplementary duty (amendment) ordinance - 2025 and the excise and salt (amendment) ordinance - 2025 – were issued on Thursday. 

The mobile network operators have already started charging the consumers extra, in line with the 3 per cent additional tax. 

According to the Bangladesh Telecommunication Regulatory Commission (BTRC) data, mobile internet users decreased by 10 million to 119 million throughout the past five months until November. In contrast, the number of broadband users has increased from 13.5 million to 13.7 million during the same period.

The ISPs said the total tax on the broadband service now stands at 15.5 per cent – a combination of the previous 5 per cent VAT and the newly introduced 10 per cent supplementary duty. A broadband internet bill of Tk 500 will now add Tk 77.50 in taxes, while a Tk 1,000 bill will add Tk 155 in taxes.

Imdadul Haque, president of the Internet Service Providers Association of Bangladesh (ISPAB), said the additional costs will be added to the bills from next month. Citing the ISPs direct communication with consumers, he noted that all will express dissatisfaction with the extra charge. He urged the government to revoke the additional duty. 

Meanwhile, the chief corporate affairs officer (CCAO) of Grameenphone, Tanvir Mohamad, expressed dismay at the decision of duty hike. In a statement, he noted that the tax hike came at a time when there are efforts to overcome economic challenges, with inflation remaining above the 10 per cent threshold. It increased the burden of indirect taxes on consumers. 

In the budget for 2024-25 fiscal year, the Awami League government raised the supplementary duty on mobile network services from 15 per cent to 20 per cent. With VAT, surcharges, and other fees, the total tax burden on mobile services now exceeds 42 per cent. 

For a Tk 100 recharge, the government will receive around Tk 30 in tax, alongside other fees. Against an income of Tk 100, the mobile operators will remit over Tk 56 to the government in taxes and fees.

Animesh Kaiser, a businessman who uses both mobile and broadband internet for professional and personal use, described the price hikes as a blow to the dead. The simultaneous cost hike for both mobile and broadband services will add to the financial strain.