STAR BUSINESS REPORT

The government is considering reducing import duties on legally imported smartphones ahead of the launch of the National Equipment Identity Register (NEIR) on December 16.

The National Board of Revenue (NBR), the commerce ministry and the Bangladesh Telecommunication Regulatory Commission (BTRC) have agreed on measures to curb unauthorised imports, support local manufacturers and ease rules for expatriates, said Faiz Ahmad Taiyeb, special assistant to the chief adviser for the Ministry of Posts, Telecommunications and Information Technology, yesterday.

“Work on the duty cut is already in progress. Any reduction in duties on imported phones will be matched by adjustments to VAT and other taxes for the country’s 13 to 14 assembly plants to ensure fair competition,” Taiyeb said.

He warned that without such alignment, foreign investment in Bangladesh’s mobile device manufacturing sector could face setbacks.

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

Currently, import duties on legally imported smartphones stand at about 61 percent.

The move comes after a protest by the Mobile Business Community Bangladesh on November 30, when many mobile shops closed their doors over high import taxes and the upcoming NEIR rollout.

NEIR is expected to block unauthorised and stolen devices. Industry leaders have welcomed the move, though traders fear unsold stock without a valid International Mobile Equipment Identity (IMEI) registration will become worthless.