An interim government-formed task force has recommended withdrawing "excess taxes" on the internet by declaring it a social good.

A social good refers to a product or service that benefits society as a whole and should be accessible to all, regardless of their economic status.

The task force on "Restrategising the Economy and Mobilising Resources for Equitable and Sustainable Development" made the statement in a report published last month.

"Declare the internet as a 'social good' and eliminate all forms of excessive taxation (such as 20 percent supplementary duty, surcharge, revenue sharing)," it said.

According to the taskforce, this measure will lower mobile data costs and significantly boost internet adoption in rural, low-income areas.

The task force was headed by KAS Murshid, a former director general of the Bangladesh Institute of Development Studies.

The proposal was included in a chapter titled "Embracing the Digital Economy: A Rapid Transition", written by task force member Fahim Mashroor, CEO and co-founder of bdjobs.com.

The task force also advised liberalising the telecommunication licensing system in favour of unified licensing for the full ecosystem.

By reducing regulatory layers, it will help eliminate rent-seeking that inflates transmission and distribution costs. Additionally, this will substantially increase foreign direct investment in the sector, it said.

The task force also advocated mandatory resource and infrastructure sharing (active sharing), including towers and spectrum, to enhance resource efficiency and reduce costs.

"It will enable all industry players to better monetise their investments and pass on financial benefits to end users through lower prices. Additionally, it will improve service quality in underserved areas," it said.

The task force made four proposals on digital public infrastructure.

It suggested establishing a unified personal ID system for all citizens to enable seamless authentication, verification, and integration of identity information, ensuring efficient access to public and private services.

The task force also recommended enacting personal data protection laws and sharing an ordinance/act to establish a legal framework for privacy protection and to ensure individuals retain ownership over their personal data.

This would facilitate innovation, support technological advancements, and safeguard citizens' rights, it said.

The task force proposed developing a "Consent Framework and Data Transfer & Sharing Architecture" to empower individuals to control their data usage and extract greater value from it.

It will also enable instant digital payments across multiple platforms to ensure seamless interoperability of all financial transactions (P2P, P2B, P2G) in real-time, it said.

The task force made three recommendations for digital industry development.

It called for prioritising mid-level technical leadership development over general digital skills at the junior level, addressing the key barrier to industry growth – an acute shortage of technical leadership in local IT firms.

The task force also emphasised the need to refine and simplify financing regulations to enable local financial institutions, including banks and capital markets, to fund the digital industry without depending on traditional collateral-based financing.

This would have a major positive impact on industry growth by resolving funding constraints, both short and long-term, driving innovation, fostering product development, and facilitating expansion into global markets, it said.

It also advocated regulatory support to attract both inbound and outbound FDI, enabling the integration of international financing models, including venture capital and debt financing, with the local industry.

At the same time, export-focused local firms will gain opportunities to expand their operations through acquisitions or investments abroad, said the task force.