Nat’l Budget 2025-26: OTT platforms to get costlier

Entertainment Report :

The interim government has impose a 10 per cent supplementary duty on Over-the-Top (OTT) platform services in the budget for the fiscal year 2025-26, which will lead to increased expenses for users of these digital streaming platforms.
The interim government unveiled the proposed national budget for the fiscal year 2025-2026 on Monday.
During his speech, Dr Salehuddin Ahmed stated that a formal definition of OTT services has been included in the budget and a 10 per cent supplementary duty has been imposed on these services.
Due to the absence of a functioning parliament, this year’s budget was broadcast simultaneously on state-run Bangladesh Television (BTV) and various private media outlets.
This marks the 54th national budget in country’s history.
While talking about supplementary duty on OTT platform services, Swizee Islam, Content Head of Binge, said that the platform currently pays 2 per cent advance income tax and 15 per cent VAT.
She said, “If an additional 10 per cent supplementary duty is imposed in the budget, the overall cost of the product will rise significantly. This will inevitably push up the price for consumers as well, making it increasingly difficult for us to sustain operations in this industry.”
Redoan Rony, CEO of Chorki, said the government has finalised the OTT policy.
He said, “This is a growing industry in Bangladesh, and the government must first make a plan to protect it. If taxes are imposed in this manner before the industry has even found its footing, it will have a negative impact.”
Apart from slapping a supplementary duty on OTT platforms, the government is also expected to hike the value-added tax (VAT) on commissions from online sales of goods to 15 per cent in the fiscal year 2025-26, up from 5 per cent a year ago.
Already, the standard 15 per cent VAT is applied on most types of commissions. But the VAT rate on sales commissions is lower in the case of online sales, said an official of the finance ministry.
The OTT platforms in Bangladesh have seen rapid growth in recent years, driven by increased smartphone penetration, affordable internet, and rising demand for localised content.
The Covid-19 pandemic significantly accelerated the shift from traditional TV and cinema to digital streaming platforms, industry people said. Popular OTT platforms in Bangladesh include Chorki, Hoi Choi, Bongo, Binge, etc.