BD cuts mobile phone imports by 60% to lower handset prices

Bangladesh’s National Board of Revenue has reduced customs duty on mobile phone imports by 60 per cent, a move aimed at keeping handset prices affordable for consumers and supporting wider access to digital services.

In a notification issued on Sunday, the revenue authority said customs duty on imported mobile phones has been lowered from 25 per cent to 10 per cent. Officials said the decision was made to ease the cost burden on buyers as smartphones become increasingly essential for communication, education, financial services and access to government platforms.

The NBR said the move is part of ongoing efforts to ensure that mobile phones remain within the purchasing power of the general public, while also supporting the country’s broader digitalisation goals.

At the same time, the government has taken steps to protect domestic mobile phone assembling industries. In a separate notification, customs duty on components imported for local assembly has been reduced from 10 per cent to 5 per cent, a 50 per cent cut. Officials said this was intended to prevent local manufacturers from facing unfair competition from imported fully built devices.

The duty reductions are expected to have a direct impact on retail prices. According to revenue officials, the price of a fully built imported smartphone valued above Tk 30,000 could fall by around Tk 5,500. Domestically assembled phones in the same price category are expected to become cheaper by approximately Tk 1,500, reflecting lower costs for imported components.

Industry observers say the changes could help stabilise the mobile phone market, which has been under pressure from higher taxes, rising global production costs, and currency fluctuations in recent years.

The government said it hopes the reduced duties will make smartphones more accessible, particularly as mobile connectivity plays a growing role in economic activity and public services. Bangladesh widely uses mobile phones for mobile banking, digital payments, online education, healthcare services, and e-governance platforms.

Bangladesh has seen steady growth in local mobile phone assembly over the past decade, with several international and regional brands setting up production facilities in the country. Officials said lowering import duties for components would help sustain these operations, protect jobs, and encourage further investment.

The NBR reaffirmed that it will continue to monitor market trends and review tax policies to ensure mobile phone prices remain affordable. It added that further measures could be considered if needed to balance consumer interests with industrial growth.

Analysts say the move could also have wider benefits for the digital economy, supporting the expansion of e-commerce, fintech services and online entrepreneurship as smartphone ownership becomes more widespread.