Staff Reporter :
The National Board of Revenue (NBR) is considering tax concessions at both the import and local production stages of mobile phones in an effort to lower handset prices for consumers, NBR Chairman Md Abdul Rahman Khan said on Monday.
He made the remarks at an event organised by the Research and Policy Integration for Development (RAPID) in Dhaka.
“No country in the world collects as much tax from trade through imports as we do. This is not always aimed at revenue collection; in most cases, it is intended to protect local industries,” Khan said.
Earlier in the day, mobile phone manufacturers met the NBR chairman and voiced concerns over possible tax reductions on imported handsets.
They also questioned the potential impact on their investments, particularly in light of the upcoming implementation of the National Equipment Identification Register (NEIR).
The NEIR system, initially scheduled to be enforced on December 16 but later deferred by three months, is designed to curb the use of illegally imported mobile phones by requiring handset registration on mobile networks.
Under a transitional arrangement, phones brought in through illegal channels will be allowed to be sold until March 15, after which unregistered devices will be barred from accessing mobile networks.
Khan said the NBR aims to balance the interests of local manufacturers, importers and consumers.
“Our goal is to reduce mobile and smartphone prices in Bangladesh while protecting all stakeholders and ensuring consumer interests. To achieve this, we are prepared to offer concessions at both the import and production stages,” he said.
He also noted that most high-end smartphones currently enter the country through the grey market, resulting in little to no revenue collection.
“If we can formalise this process through the NEIR, even with some revenue concessions, overall revenue will increase as transactions move into the formal economy,” he added.
At present, smartphones are subject to a combined import duty and value-added tax (VAT) of 61.8 percent, while locally manufactured or assembled handsets face a tax burden ranging from 30 percent to 35 percent, depending on the level of local value addition.
