Govt Slashes Smartphone Import Tax to 43.4% to Curb Illegal Phones, Increase Local Manufacturing

Bangladesh reduced mobile phone import tax from 61% to 43.4% on January 1 to curb smuggling, lower prices, and boost local manufacturing.

The Bangladesh government has lowered the import tax on smartphones from 61 percent to 43.4 percent in an effort to discourage people from importing and using illegal and smuggled phones. Following an Advisory Council meeting, Chief Adviser's Press Secretary Shafiqul Alam made the announcement on January 1, during a press meeting at the Foreign Service Academy.

According to Shafiqul Alam, the customs tax on imported mobile phones has been lowered from 25% to 10%, while the customs market tax on locally made phones has been lowered from 10% to 5%.

As a result, the overall tax incidence on imported mobile phones will come down from 61.80% to 43.43%, the press secretary said. For locally manufactured gadgets, the tax incidence will also decline significantly, reports BSS.

Alam stated, the government expects that these actions will increase Bangladesh's mobile phone market, draw in more foreign investors for domestic production, lower prices, and deter the importation of used and refurbished phones, which frequently upset consumers and cost the government money.

At its first meeting of the year, the Council of Advisers approved the draft National Urban Policy 2025 and decided to drastically lower the overall tax incidence and customs duties on both local manufacturing and imports of mobile phones. To ensure the estimated standard of living for urban residents, the government approved the draft National Urban Policy 2025 which is a major step towards planned, inclusive and sustainable urban development.

Shafiqul Alam pointed out that the Council of Advisers also talked about Hajj management and noted that while some problems still exist in the private Hajj agency system, there are no notable complaints from pilgrims under government management. As a result, the press secretary stated, the council of advisers deliberated on ways to enhance Hajj management in general, including prosecuting those who exhibit carelessness.