Dhaka, June 2 -- Local mobile phone manufacturers and assemblers are likely to face increased value-added tax (VAT) in the next fiscal year (FY2025-26), as the government plans to reduce certain facilities currently enjoyed by the sector.

Authorities argue that the measure aims to prepare the industry to become sustainable and competitive with imported alternatives.

According to officials at the Ministry of Finance, companies involved in surface-mount technology (SMT) and general assembly processes may see VAT rates rise to 10 per cent from the current 7.5 per cent.

Similarly, firms engaged in power circuit board (PCB) assembly, SMT processes, battery charger assembly, and general mobile phone assembly will face a VAT rate of 7.5 per c...