In the new budget proposal, an increase in the value-added tax (VAT) on mobile handsets is likely to lead to a price hike in the market soon.
Finance Adviser Dr Salehuddin Ahmed presented the proposed budget for the 2025-2026 fiscal year, amounting to Tk7,89,999 crore, in a televised speech on Monday.
The increase means that consumers looking to purchase new models from their preferred brands may face higher costs, placing additional financial pressure on the general public.
In his budget speech, the adviser proposed a 2.5 percentage point increase in the existing VAT rate for both local producers and importers of mobile handsets.
Currently, companies that manufacture two components locally—casings and chargers—pay a 5% VAT rate, while those using fully imported parts pay 7.5%.
Under the new budget proposal, these rates would rise to 7.5% and 10%, respectively.
According to sources at the National Board of Revenue (NBR), the decision aims to prevent VAT evasion in the mobile handset industry and boost government revenue.
However, industry insiders argue that VAT pressure on this sector has been steadily increasing for the past three years—while it was previously tax-free.
A leader of a mobile handset traders’ association told Bangla Tribune: “With the depreciation of the currency on one hand and declining consumer incomes on the other, increasing VAT will negatively impact the industry. There is now concern that mobile phone sales will drop.”
Economists suggest that during a time of rising living costs, imposing additional taxes on technology products may hinder people’s access to digital services.
This impact will be especially felt by students and low-income individuals who rely on affordable technology.
