Bangladesh’s telecom sector is facing a serious threat to growth due to one of the highest tax burdens in the world, warned Johan Buse, Chief Executive Officer of Banglalink, the country’s third-largest mobile operator.
Speaking at a views exchange session with telecom journalists at a city hotel on Monday, Buse expressed deep concern over the long-term sustainability of the industry under current fiscal pressures.
“Bangladesh has enormous potential, and the telecom and ICT sectors can be key drivers of economic growth,” he said. “But the country imposes one of the highest tax burdens on telecom services globally.”
Buse pointed out that Tk 54.5 out of every Tk 100 mobile recharge goes to the government in the form of various taxes and fees, leaving operators with only Tk 45.5 after statutory deductions. He noted that taxation on telecom services in countries like Nepal, Sri Lanka, India, and Indonesia is significantly lower.
He also criticized the Tk 300 SIM tax, calling it a major obstacle to sectoral expansion.
Currently, Bangladeshi mobile users face an effective tax rate of 39% on mobile services — comprising 18% VAT, 20% supplementary duty, and a 1% surcharge — making it one of the highest rates in the region.
“When taxes rise continuously, the industry faces suffocation and reduced investor confidence,” Buse said.
He further raised concerns over stringent regulatory control on pricing, particularly for data and voice services. “Lower prices may seem consumer-friendly in the short term, but they undermine the industry’s ability to sustain and invest in future growth,” he warned.
Buse emphasized that stagnant revenue resulting from suppressed prices directly impacts capital expenditure, particularly in rural and underserved regions.
Commenting on next-generation technology, Buse noted that Bangladesh has yet to publish cost estimates for 5G deployment, while neighboring countries such as India, Pakistan, Vietnam, Cambodia, Malaysia, and Singapore have already shared their investment projections.
Responding to a query, Buse said, “Banglalink has a challenger mentality. Without challenges, you can’t achieve significant progress.”
He claimed that Banglalink has been the fastest mobile network in Bangladesh for the past three years, crediting consistent investment and network expansion. “Over the past four to five years, we’ve worked to build the fastest service in the country.”
Buse also urged the government to revisit spectrum pricing policies. “How can we expect affordable internet if spectrum costs remain so high?” he asked.