Different mobile operators have already started charging extra with new rates immediate after the announcement of the budget on Thursday.
Earlier, customers could get talk time of Tk 73 for recharge of Tk 100 after deduction of VAT and supplementary duty. But talk time for every Tk 100 recharged has come down o Tk 69.35.
The cost of mobile internet use has also risen. Before the budget, customers could use internet worth Tk 73 after deduction of Tk 27 for VAT and supplementary duty for Tk 100 internet package.
Customers now get internet worth Tk 69.35 for recharge of Tk 100 after deduction of Tk 30.65 for VAT and supplementary duty. Besides, tax on SIM card sale is expected to increase. Bangladesh Mobile Phone Consumers Association presidentMohiuddin Ahmed said due to the new 5 percent tax rise in the telecommunication services, the current tax collection from mobile consumers will rise by 39 percent, which is the highest in South Asia.
The Association of Mobile Telecom Operators of Bangladesh (AMTOB) ina statement demanded withdrawal of the additional 5 percent supplementary duty on mobile services.
The tax increase will put burden on both the telecom industry and consumers, particularly low-income people, reducing mobile use and affecting the government revenue.
The rise in VAT on mobile SIM cards is also expected to slow subscribers’ growth, with about 45 percent of the population not using mobile phone. AMTOB warns that these tax hike may hamper the country's digitisation efforts and the GDP growth, the government's Smart Bangladesh vision as well.