Accelerating digital transformation in Bangladesh 2021

Globally, more than 5 billion people are using mobile technology to access life-enhancing services such as digital health services, e-government platforms and digital education services. Mobile connectivity is an important driver of economic growth across all sectors. In Asia, the International Telecommunication Union (ITU) estimates that a 10% increase in mobile broadband penetration would yield a 0.51% to 2.43% increase in GDP per capita.

A conducive regulatory environment, especially the tax framework, is required to accelerate countries’ digital transformation and maximise the benefits of connectivity. This is particularly relevant as Bangladesh now faces the challenge of penetrating low-income groups to connect the unconnected.

This report presents the current state of mobile sector taxation in Bangladesh and provides recommendations to improve connectivity through tax reform. The study concludes by recommending an alignment of the minimum turnover tax and the corporate tax with the general rate to enable the industry to invest towards the achievement of Digital Bangladesh.