Five priorities outlined for ICT, telecom sectors

The government has mapped out five strategic priorities for its ICT and telecommunications sectors, focusing on areas such as tax reform and upgraded connectivity, Rehan Asif Asad, adviser to the prime minister on post, telecommunications, ICT, science and technology, said yesterday.

The priorities also include digital public infrastructure, AI-focused skills development and electronics manufacturing, he said at a policy dialogue, titled “Accelerating Bangladesh’s Digital Future: Policy Priorities for Innovation, Investment & ICT-Led Growth”, organised by the American Chamber of Commerce in Bangladesh (AmCham), at The Westin Dhaka.

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The adviser said the government would pursue consistent, forward-looking policies for the sector under a five-year tax framework.

He highlighted that Bangladesh’s mobile industry currently shoulders an effective tax burden of 51 percent to 56 percent, well above the global average of 22 percent to 27 percent. He added that removing the SIM tax forms a key component of ongoing tax relief efforts.

Fixing connectivity remains a major priority. While Bangladesh ranks seventh globally in total mobile subscribers, the network quality severely lags international standards. To modernise state services, the government plans to deploy a “One Citizen, One ID, One Digital Wallet” system modelled on Estonia’s open-source X-Road platform. Offered free to citizens, every digital ID will link directly with bank accounts and the National Board of Revenue.

Fourthly, the administration aims to create an AI-ready workforce. Programmes will upskill the country’s 23,000 to 30,000 annual science and engineering graduates in artificial intelligence, cybersecurity, and data science, while foundational modules will be introduced into school curricula.

Finally, the government plans to offer electronics manufacturers incentives similar to those that powered the ready-made garment sector.

Citing international benchmarks, the adviser noted how Vietnam expanded its consumer electronics exports from $1 billion to $217 billion within a decade. Citing UN and International Telecommunication Union data, he added that every 10 percent increase in broadband penetration boosts national GDP by 1 percent.

Responding to the plans, AmCham President Syed Mohammad Kamal welcomed the ratification of the Personal Data Protection Act.

However, he urged officials to clarify new digital permanent establishment rules for platforms exceeding 100,000 subscribers, reconsider raising the internet service provider turnover tax from 1 percent to 1.5 percent of gross receipts, and ease inbound and outbound international payments for technology companies and startups.