The government's decision to increase an additional 5 percent supplementary duty on mobile services, raising the total from 15 percent to 20 percent, will create further burden on the telecom industry and the mobile subscribers of the country, said the Association of Mobile Telecom Operators of Bangladesh (Amtob).

"This increase will raise the cost of voice and internet services, putting financial pressure on users, particularly those from marginalized communities, and potentially leading to decreased mobile service usage. This reduction in usage will negatively impact businesses and reduce government revenue," it said.

The association said the higher VAT on SIM cards will also discourage new users, slowing the growth of mobile connections in a country where 45 percent of people are still unconnected.

The value-added tax (VAT) was increased by Tk 100 to Tk 300 for every SIM in the proposed budget.

"These moves will result in slowing down the overall digitization of the country which not only have impact on the GDP growth but also contradicts with the Smart Bangladesh Vision of the Government. We urge the government to reconsider these duties and take into account our earlier telecom budget recommendations," the Amtob said.