VAT hike on mobile, internet services sparks protests
Protesters warn the government of further action, including laying siege to the National Board of Revenue (NBR) office, if the decision is not withdrawn within a week
Highlights:
- Mobile Consumers Association organises human chain in Dhaka
- Stakeholders warn of harm to internet services and small businesses
- Lack of consultation and negative effects on telecom sector
- Protesters demand reversal within a week, or sit-in at NBR
The Bangladesh Mobile Phone Consumers Association organised a human chain protest in the capital today (12 January) strongly opposing the newly imposed Value Added Tax (VAT) and supplementary duty on mobile and internet services.
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Arranged in front of the National Press Club in Dhaka, the participants at the protest warned the government of further action, including laying siege to the National Board of Revenue (NBR) office, if the decision is not withdrawn within a week.
Speaking at the demonstration, Aminul Hakim, the president of the Bangladesh Internet Governance Forum and Internet Infrastructure Gateway (IIG), expressed concern over the impact on broadband services.
"Broadband internet, entirely driven by local entrepreneurs, is now under threat. With the imposition of a 10% supplementary duty and VAT, both consumers and the industry will suffer," he said, adding that a failure to reverse the decision would result in a larger protest.
Imdadul Haque, the president of the Internet Service Providers Association of Bangladesh (ISPAB), highlighted the potential harm to small entrepreneurs and consumers alike.
"This tax increase will discourage internet use and widen the digital divide," he warned.
Former Bangladesh Competition Commission director Khalid Abu Naser criticised the decision, saying that it would not only inconvenience citizens but also create unnecessary challenges for the government.
"Hasty decisions like this must be reversed promptly," he said.
Fahim Mashroor, a technologist and former president of the Bangladesh Association of Software and Information Services (BASIS), condemned the lack of stakeholder consultation before the tax hike.
"This unilateral decision reflects an authoritarian approach. Increased taxes will hurt the telecom and internet sectors, stifle new entrepreneurship, and make these services unaffordable for ordinary citizens," he said.
Presiding over the protest, Mohiuddin Ahmed accused corrupt revenue officials of influencing the decision for their own benefit.
"We believed our days of street protests were over, but such inconsiderate actions forced us back onto the streets. If the government does not act within a week, we will organise a sit-in in front of the NBR office," he said.
Other speakers included technologist Fida Haque, freelancer representative Anis, and representatives from the Recharge Business Association and Pathao.
The protest reflected growing discontent among stakeholders across sectors, urging the government to reconsider the decision in the interest of consumers and the country's digital economy.
