Streaming gets costlier as 10pc supplementary duty imposed on OTT

The cost of streaming services in Bangladesh is set to rise as the proposed national budget for the fiscal year 2025–2026 includes a 10 per cent supplementary duty on Over-the-Top (OTT) platforms.

The announcement was made on Monday by finance adviser Salehuddin Ahmed during the unveiling of the national budget. The supplementary duty will apply to both local and international OTT services.

Popular platforms such as Chorki, Hoichoi, Bongo, and Binge operate widely in Bangladesh, alongside global streaming giants like Netflix, Amazon Prime Video, and HBO Max, which many Bangladeshi users access through subscription payments.

In addition to the duty on OTT services, Value Added Tax (VAT) on commissions from online product sales has been increased to 15 per cent, up from last year’s 5 per cent.

In his budget speech, the adviser said the definition of OTT platforms has been outlined clearly, and the new 10 per cent supplementary duty will now apply accordingly.

As there is currently no parliament in place, the budget was broadcast simultaneously on state-run BTV and several private media outlets. This marks the 54th national budget and the first under the interim government led by Professor Muhammad Yunus.

Use of OTT platforms has surged in recent years in tandem with the growing penetration of smartphones and internet access across the country.