High tax hinders local assembly of handsets Symphony

Muhammad Zahidul Islam

Bangladesh's mobile telephone set market has reached maturity and Symphony has vie a vital half within the growth, same a senior official of the native transportable whole.

The company plans to line up associate degree manufactory in East Pakistan however the government's tax structure is being the damper, Rezwanul Hoque, senior director of Symphony Mobile, told The Daily Star in associate degree interview.

Symphony presently imports handsets factory-made in China, that it's subjected to twenty five % duty.

But to assemble the handsets domestically, because it plans to try and do, the corporate are subjected to tax upwards of thirty seven %.

“We would basically be punished for grouping the handsets in East Pakistan,” he said, whereas urging the govt. to supply tax support because the trade would be able to export handsets eventually.

Here, India will function Bangladesh's model: the close country's government unbroken a ten % gap in taxes and duties for domestic assembly and import of handsets.

If the govt. offers the native makers some tax support, some international giants may become fascinated by relocating their factories to East Pakistan, said Hoque.

The labour price is increasing in China and that they square measure getting ready to push a number of their factories out of the country.

“If we would like to grab the chance, this is often the correct time. If we do not fuck, Asian country or Asian country or the other country can,” he said, adding that India, that flagged off domestic telephone set assembly 3 years back, already in prime position.

Currently, Bangladesh's annual telephone set market size is regarding Tk seven,000 large integer and by 2020 it'll hit Tk twelve,000 crore, per Hoque's estimate.

And virtually eighty % of the handsets employed in East Pakistan square measure of native brands, that square measure factory-made within the same factories as those from international brands.

The reason for the recognition of native brands' handsets is that their quality is on par with those of international brands however they're considerably cheaper.

“The customers in East Pakistan square measure terribly savvy and worth aware,” he said.

Hoque same Symphony is doubtless the market leader in each the smartphone and have phone segments in East Pakistan.

It became the market leader in 2011 and has been maintaining the position since, by a snug margin.

“One in 2 smartphone users in East Pakistan uses Symphony handsets,” he said, adding that the corporate is doing well in feature phone phase similarly, wherever it's around fifty % market share.

The trade has been growing at 10-15 % and Symphony, that was established in 2008, has been growing at that rate too, per Hoque.

Going forward, the corporate plans to draw in each the youth and therefore the marginal folks with its product offerings.

It conjointly plans to introduce associate degree e-store through that its product are often purchased.

In India, thirty % of the twenty four large integer handsets sold  per annum square measure through e-stores, per Hoque. however in East Pakistan, regarding one % of the handsets sold  square measure through the web platform.

“Customer education may be a challenge here. India introduced e-commerce 10 years back however we tend to square measure simply introducing this phase of mercantilism.”

Nowadays, customers, particularly the youths, analysis regarding the telephone set specifications and performance before creating a choice.

“They now not attend the market, explore a range of sets and so select one. They currently build the choice beforehand and attend the market to shop for that telephone set. thus we tend to square measure hopeful e-commerce can pop out during a huge method.”

Hoque conjointly expressed discontentment over the unexpected tax increase on mobile phones.

A few years back, the tax on mobile phones was ten %, however 2 years back it had been raised to twenty five %.

The tax boost has light-emitting diode to the increase within the worth of smartphones, which can ultimately place the brakes on the expansion.

When the tax was ten %, the grey market size was but ten %. however when the tax boost, the grey market dilated manifold.

Subsequently, Hoque urged the govt. to rethink the tax structure.

“There is not any different to increasing smartphone usages if the country desires to become digital.”