Govt sharply cuts taxes on handset imports, manufacturing

The government has sharply cut taxes on mobile phone imports and local manufacturing, responding to a long-standing demand from traders and aiming to curb the use of unofficial and smuggled handsets while stabilising prices.

The overall import duty on mobile phones has been reduced to 43.43 percent from 61.8 percent, Chief Adviser's Press Secretary Shafiqul Alam announced yesterday at a press briefing at the Foreign Service Academy following an Advisory Council meeting.

Besides, customs duty on imported handsets has been slashed to 10 percent from 25 percent, while that on locally manufactured phones has been lowered to 5 percent from 10 percent.

Alam said the tax incidence on locally manufactured phones would also decline significantly.

The government expects the measures to boost local manufacturing, attract investment, lower prices, and curb the inflow of used and refurbished phones, he added.

The move coincided with the launch of the National Equipment Identity Register (NEIR) yesterday, a system designed to identify and block unauthorised mobile phones.

According to data from the Mobile Phone Industry Owners' Association and the Bangladesh Telecommunication Regulatory Commission (BTRC), grey-market smartphones now account for 40 percent to 50 percent of the market.

Estimates show that 93 percent of premium phones of one brand in use in Bangladesh last year entered through the grey market, while the figure for mid-range models stood at around 69 percent, The Daily Star reported last month.

BTRC OFFICE VANDALISED AMID NEIR LAUNCH

Amid the NEIR launch, a group vandalised the BTRC office in Agargaon, Dhaka, around 4:25pm yesterday, breaking the glass wall at the front of the building.

DMP's Tejgaon Division Deputy Commissioner Ibne Mizan said a few people were detained from the scene for questioning and that they initially appeared to be mobile phone traders. Besides, the Bangladesh Army arrested 28 people on the spot.

A BTRC official said mobile phone traders had gathered outside the office around 3pm to protest the NEIR launch, and some leaders were invited inside for discussions. Shortly afterwards, however, several individuals were seen throwing bricks and vandalising the premises.

Shamim Mollah, senior vice-president of the Mobile Business Community, denied any involvement of mobile phone traders in the vandalism, suggesting that a group of curious individuals or customers might have been responsible.

Faiz Ahmad Taiyeb, special assistant to the chief adviser with executive authority over telecom and ICT, said customs duties on legally imported phones had been reduced significantly.

"Despite this, those who attacked and vandalised the BTRC office are in no way above the law," he said, adding that all those involved would be brought to justice.

He also said strict operations would begin at land ports and airports to curb illegal handset imports and stressed that NEIR is vital for digital security.

BTRC Chairman Major General Md Emdad ul Bari said some traders wanted to illegally import refurbished or used phones.

Any decision on the matter rests with the commerce ministry and is beyond the regulator's jurisdiction, he also noted.