We disagree with the government’s decsion to impose a 1% surcharge on the use of mobile phones.
Mobile phones are an important part of daily life, with BTRC estimating there are now over 121 million mobiles in use in Bangladesh with 77 connections per 100 citizens. Their economic importance is growing rapidly as they form the basis of innovative cost-saving mobile financial services.
The government should be encouraging mobile use, not imposing added charges.
Every mobile user already contributes to government funds via the levies and taxation paid by mobile companies, so it is not the case that this levy would broaden the tax net.
The purported benefit of the new tax in raising Tk140cr for health and education is easily outweighed by its disadvantages.
It can only punish the greater social good delivered by mobile phones. Mobile financial services such as Bkash are enabling low earners to cost-effectively process and send small amounts of money all around the country.
A greater amount than the sum promised could be raised for health and education by encouraging mobile usage to grow further and benefit the economy, than by adding extra taxes.
New taxes should only be created on the basis of logic and national need. They should ideally be directed towards discouraging socially or environmentally harmful activities, rather than adding costs and disincentives to beneficial services that help the economy.
