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Search date: 14-01-2018 Return to current date: Click here

Poor penetration tate displeases distributors

A cut in tax on smart devices may help improve picture, they say


SM Najmus Sakib | January 14, 2018 12:00:00


Bangladesh will have to go a long way before attaining a satisfactory smartphone users' base, say mobile phone distributors.

According to them, only 30 per cent of the people in the country use smartphones.

Transsion Bangladesh Limited CEO Rezwanul Haque said even though there are around 100 million mobile phone users in the country, only 30 million people use smartphones.

"According to the available government information total number of mobile phone users is about 100 million. Of them 30 per cent are smartphone users", he said while talking to FE on Friday.

He also stated that the number of mobile phones sold this year is less than that of the previous year.

"In the country 70 per cent mobile phone users are using handsets below Tk 2,000, which shows that people still can't afford to buy smartphones," added Haque.

The Transsion Bangladesh Limited CEO also believes that a reduction of the prevailing 31 per cent tax on smartphones and smart devices may help improve the picture.

"Bangladesh is currently a Tk 100-billion mobile phone market. But government is losing about Tk 1.0 billion revenue just because of illegal import which accounts for 30 per cent of total import", mentioned Rezwanul Haque.

Manufacturing smartphones locally can reduce the price by 10 to 15 per cent, he believes.

The government is considering initiatives to translate government services into e-governance, so more people can engage themselves in using internet, tabs, smartphones and other smart devices, said ICT State Minister Junaid Ahmed Palak on Thursday.

Palak made the comment on the opening day of a three-day event titled 'Techshohor Smartphone and Tab Expo-2018' in the capital.

Event organiser Expo Maker's Strategic Planner Muhammad Khan said apart from government's initiative to providing internet at a cheaper cost, the fair is plying a positive role to encourage people to use smartphone.

Post, Telecommunication and Information Technology Minister Mustafa Jabbar at the opening day of the event said the government is working to address these issues.

Mustafa Jabbar said "(The) Government is considering 10 per cent cash incentive to local information technology (IT) service exporters".

"Besides, a 'tax holiday' facility is under consideration for those who are seeking to set up IT industries in the government-announced hi-tech park zones," he said.

Moreover, the government will come up with a value added service guideline for the sector, added the minister.

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