Govt decides to cut mobile import taxes to boost legal imports and lower prices

The proposal was discussed at a high-level meeting on December 1 with representatives from the National Board of Revenue (NBR), the Ministry of Commerce, the Posts and Telecommunications Division and the Bangladesh Telecommunication Regulatory Commission (BTRC).
 

According to the ministry, the government is considering reducing the existing import duty currently around 61 percent  to encourage legal handset imports and bring down market prices. Authorities are also reviewing VAT and tax structures applicable to locally assembled devices to ensure domestic manufacturers are not put at a disadvantage. Bangladesh currently hosts 13 to 14 mobile phone assembly plants, many backed by foreign investment.
 

The meeting also outlined new rules for expatriate Bangladeshis and foreign travellers. Those holding BMET registration cards will be allowed to bring in three mobile phones tax-free, while other travellers may bring in two. Visitors may use their personal phones without registration for up to 60 days, after which devices must be registered under NEIR.
 

Officials urged travellers to carry proper purchase documents to prevent misuse of their device identifiers in illegal smuggling networks operating through airports in Malaysia, Thailand, Singapore and several Middle Eastern countries.
 

Traders who have stockpiled legally imported devices without paying duties, but with valid IMEI numbers, will be given an opportunity to regularise these units at a reduced tax rate before December 16. The concession, however, will not extend to cloned or refurbished handsets.
 

Authorities also dismissed rumours that mobile phones would be abruptly disconnected before NEIR becomes operational. No active device will be blocked before December 16, officials said, advising users to verify that SIM cards registered in their names are not being misused for cybercrime, online gambling or mobile banking fraud. Consumers were also warned against purchasing handsets without legally issued IMEI numbers.
 

Officials added that the NEIR system will help curb the entry of old, repurposed or disguised electronic waste into the country a problem often facilitated through casing replacements. Customs surveillance is being intensified at airports and land ports receiving flights from India, Thailand and China.
 

The forthcoming Telecommunications Act 2025 will introduce new data protection safeguards for eKYC and IMEI registration processes, including penalties for misuse of personal or device information.
 

Commenting on the proposed tax adjustments, NBR Chairman Md Abdur Rahman Khan told The Daily Star: “We will make decisions based on the broader national interest. We are not saying duties will be reduced immediately, but the matter is under consideration.”