The task force report on re-strategising the Economy and Mobilising Resources for Equitable and Sustainable Development recommended that the government immediately withdraw 20 per cent supplementary duty and 2 per cent surcharge on the Internet.
The 12 member task force, formed by the planning ministry on September 2024, submitted its report to the interim government chief adviser professor Muhammad Yunus on Thursday.
The report says that the current high taxation and fiscal policies that impose charges exceeding 50 per cent on internet users directly contradict the country鈥檚 commitment to equitable development.
鈥楧ue to excessive internet prices, the mobile internet adoption is low and there is a noticeable underutilisation of internet resources in critical areas such as education, government services, and online banking among the population,鈥� it said.
Considering the significant impact of internet-driven technologies in the daily life of the ordinary people, particularly AI applications in education and healthcare, governments must recognise the internet as a 鈥榮ocial good鈥� to guarantee equitable access for all citizens, especially marginalised communities, the report noted.
鈥業t is estimated that for every Tk 100 data pack purchased by a mobile user, more than Tk聽50 is allocated to the government in various forms, including supplementary duty (20 per cent), VAT (15 per cent), revenue sharing (5.5 per cent), surcharges (2 per cent), social obligation funds (1 per cent), and spectrum related fees (approximately 9 per cent),鈥� the report reads.
The task force in its report said that the Bangladesh Telecommunication and Regulatory Commission should waive the 5.5 per cent revenue sharing and 1 per cent social obligation fund over internet revenue.
It also recommended eliminating international internet gateway, interconnection exchange, international gateway services (IGW), IGW operators forum, and national internet exchange layers from the current telecom ecosystem.
The data transmission value chain is intentionally or unnecessarily divided into multiple disconnected segments, contribute to unnecessary costs, raising the price of mobile data for consumers, said the report, using the term artificially fragmented.
The currently existing 29 licensing categories have created a complex telecom ecosystem, leading to inefficiencies and non-value-added entities. This creates layered intricacies that ultimately impact quality of service and cost of service to subscribers.
Removing these layers will directly decrease cost in both data and voice for telecom operators. Operators can use the cost saving for investing in rural last mile connectivity (mostly data where investment is urgently required), according to the report.
Mentioning establishing cache servers as a quick way to reduce the price of internet, the report noted that global companies like Google, Meta and Bytedance have not set up data centres in Bangladesh due to legal concerns. They seek legal protection, such as intermediary liability protection.
The report said that broadband providers pay less than Tk聽2 per GB due to minimal delivery costs, while telecom operators face much higher expenses. Their transmission costs are six times higher than the cost of bandwidth itself.
For each GB, telecom operators pay Tk聽1.2 to NTTNs and Tk聽2.6 to tower companies, significantly increasing the overall operational expenses compared with the ISP provider in the urban areas.
The NTTN policy prevents MNOs and ISPs from laying fibre networks, forcing dependence on NTTNs. Telecom operators are also barred from importing essential technologies like DWDM, limiting cost efficiency.
The task force was led by KAS Murshid, former director general of the Bangladesh Institute of Development Studies. Other members included Akhtar Mahmood, former World Bank official, Selim Raihan, professor of economy department at the University of Dhaka, Abdur Razzak, former head of research department at the Commonwealth Secretariat, Mushfiq Mobarak, professor at Yale University鈥檚 economics department; Shamsul Haque, professor at Bangladesh University of Engineering and Technology, Rumana Huque, professor of economy at the University of Dhaka, Nasim Manzoor, former president of the Metropolitan Chamber of Commerce and Industry, Dhaka, Monzur Hossain, research director at Bangladesh Institute of Development Studies, Fahmida Khatun, executive director of Centre for Policy Dialogue, AKM Fahim Mashrur, chief executive officer of BDjobs, and Md Kawser Ahmed, member secretary of the general economics division of the Planning聽Commission.
