The government has outlined five key priorities for the development of the ICT and telecommunications sectors, with a focus on initiatives such as tax reform and enhanced connectivity, as stated by Rehan Asif Asad, the adviser to the prime minister on post, telecommunications, ICT, science, and technology. These priorities encompass digital public infrastructure, skills development in AI, and the promotion of electronics manufacturing. The announcement was made during a policy dialogue event titled “Accelerating Bangladesh’s Digital Future: Policy Priorities for Innovation, Investment & ICT-Led Growth”, organized by the American Chamber of Commerce in Bangladesh (AmCham) at The Westin Dhaka.
Asad emphasized the government’s commitment to implementing consistent and forward-thinking policies for the sector through a comprehensive five-year tax framework. He highlighted that the mobile industry in Bangladesh currently bears a tax burden ranging from 51 percent to 56 percent, significantly higher than the global average of 22 percent to 27 percent. Efforts to provide tax relief include the crucial step of eliminating the SIM tax.
Improving connectivity stands out as a critical objective. Despite ranking seventh in the world for total mobile subscribers, Bangladesh’s network quality falls below international standards. To enhance state services, the government plans to introduce a system called “One Citizen, One ID, One Digital Wallet”, inspired by Estonia’s X-Road platform. This system, offered at no cost to citizens, will link digital IDs directly to bank accounts and the National Board of Revenue.
Another key focus is on preparing a workforce equipped for artificial intelligence (AI) technologies. Initiatives will target the upskilling of the country’s annual 23,000 to 30,000 science and engineering graduates in areas such as AI, cybersecurity, and data science. Additionally, foundational modules in these fields will be integrated into school curricula.
In a move to boost electronics manufacturing, the government plans to introduce incentives similar to those that bolstered the ready-made garment sector. Drawing comparisons to successful cases like Vietnam, where consumer electronics exports surged from $1 billion to $217 billion in a decade, the adviser emphasized the potential impact of such measures. Noting data from the UN and International Telecommunication Union, he stated that a 10 percent increase in broadband penetration could lead to a 1 percent rise in national GDP.
In response to the outlined plans, AmCham President Syed Mohammad Kamal welcomed the enactment of the Personal Data Protection Act. However, he urged officials to provide clarity on new digital permanent establishment rules for platforms exceeding 100,000 subscribers, reconsider the proposed increase of the internet service provider turnover tax from 1 percent to 1.5 percent of gross receipts, and streamline inbound and outbound international payments for technology companies and startups.
