Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Domestic mobile phone-manufacturing industry is set to come under taxing as the government thinks it has developed enjoying fiscal incentives given so far.
In the forthcoming budget for Fiscal Year 2023-24, tax might be revised upward on local assembling of mobile-phone handset and import of raw materials for local industry.
Currently, mobile-phone assembling is subject to payment of 3.0-to-5.0-percent value-added tax (VAT) while tax is waived on import of its raw materials under certain conditions, officials said.
In the current FY, the NBR imposed 5.0-percent VAT on mobile- handset sales and local refrigerator manufacturers.
Earlier, local manufacturing of mobile handset and its sale were exempt from payment of VAT.
Officials said the tax incidence is still high on imported handsets. Currently, import of smart phone is subject to paying 58-percent tax.
The government may also extend tax benefit on local home- appliance-manufacturing industry by one more year to promote 'Made in Bangladesh' brand.
Apart from local pioneer Walton, a number of global brands have invested in Bangladesh following fiscal incentives of the government on mobile-phone manufacturing.
Bangladesh Telecommuni-cation Regulatory Commission (BTRC) data show that a total of 15 plants have so far been established in Bangladesh and they produced 103.5 million handsets until 2022.
The production of mobile handsets jumped in 2018 after starting local production of Oppo, Realme and Vivo-branded devices.
One official says, "It's time the tax benefit be phased out from the sector that has flourished availing the facility."
However, mobile phone-set manufacturers said sale of mobile sets declined by up to 20 per cent following price hike with the upward adjustment of taxes.