Use of mobile phones to cost more

02 June,2016

RTNN News Desk: Mobile phone use is set to become more expensive as the government proposed to hike the supplementary duty on the services that subscribers use via Subscriber Identity Module (SIM) and Removable User Identity Module (RUIM) cards.

While placing the budget for fiscal year 2016-17 in parliament, Finance Minister AMA Muhith proposed to hike the supplementary duty to 5% from the existing 3%.

He said the decision was made as the SIM tax was significantly reduced in last fiscal year’s budget.

With the duty hike, using mobile phones will become more expensive, as the duty will be imposed on all services including voice calls, short messaging services and multimedia messaging services, internet and other services.

Currently, users share 15% VAT on the use of mobile phone services, including voice, data, or other value-added services as well as a 3% supplementary duty.

There is also a 1% surcharge on these services.

According to an estimation by Bangladesh Telecommunication Regulatory Commission, six mobile phone operators in Bangladesh have a total of around 132 million subscribers as of April 2016.

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