The government has announced plans to provide long-term incentives and policy support to the electronics and consumer electronics manufacturing sector, similar to the garment industry. Its aim is to make Bangladesh a global technology hub (Global Tech Hub) by 2030.
Finance Minister Amir Khusru Mahmud Chowdhury said in the budget speech that one of the four main pillars of the government’s strategy for the Information and Communication Technology (ICT) and telecommunication sectors is the manufacturing of electronics and consumer electronics. The other three pillars are connectivity, digital public infrastructure (DPI) and data centers and artificial intelligence (AI).
As per the plan, the electronics and consumer electronics manufacturing sector will be given ‘every facility’ available to the readymade garment industry in the next 10 years.
The aim of this policy is to create a favorable environment for investment, production and export in the technology sector.
Explaining the rationale behind this initiative, the Finance Minister said that the government wants to follow the policies and measures which have played an effective role in the development of the garment industry since 1978. According to him, the model that helped the development of the industry in a few decades, will follow the same path.
The proposed support package includes zero duty on raw materials, zero value addition facility and financial incentives on exports. These steps are seen as important elements to build a competitive electronics industry in Bangladesh.
Stating that the tax rate in this sector will be reduced step by step in the future, the finance minister said, ‘We will reduce the tax rate every two years in the next five to 10 years.’
The electronics and consumer electronics manufacturing initiative is part of a larger roadmap to strengthen the country’s digital economy and technology environment.
While formulating the policy, the government consulted with various stakeholders including freelancers and content creators. These opinions are taken to determine what steps are needed to ensure the future success of the country. The suggestions and recommendations received from the discussions are carefully reviewed and incorporated in the budget.
The ‘Connectivity’ pillar of the strategy envisages massive expansion of 5G services across the country and ensuring international standard WiFi facilities.
Under the Digital Public Infrastructure (DPI) pillar, there are plans to launch digital identity cards (Digital IDs) and digital wallets for every citizen. Through this, the country’s digital base will be strengthened and the scope of digital services will increase.
The roadmap also prioritizes data center infrastructure development and opening up APIs (Application Programming Interfaces) for startups and innovators. These steps will create an environment conducive to innovation and technological development.
Highlighting the long-term goals, the finance minister said that if consistent policies and proper policy frameworks are maintained for the next three to five years, Bangladesh will get an opportunity to emerge as a global technology center by 2030.
He said, incentives in manufacturing of electronics and consumer electronics, investment in connectivity, digital infrastructure, data center and AI sectors are being considered as the main basis for achieving this goal.
Rehan Asif Asad, adviser to the Ministry of Posts, Telecommunications and Information Technology, said that according to research by Boston Consulting Group (BCG) and other organizations, Bangladesh can become the ninth largest consumer and digital economy in the world by 2029.
He said, ‘We have to prepare ourselves. We have to make ourselves suitable.’
Rehan Asif said that the construction of the country’s first digital public infrastructure (DPI) will begin next month, which will be based on ‘one citizen, one digital ID, one digital wallet’.
Under this initiative, every citizen will get a digital identity card and will be connected to the digital economy through a digital wallet.
Rehan Asif said the government also plans to build data center infrastructure, increase the use of artificial intelligence and open up digital platforms for innovators and startups.
He also said that no government or country in the world can do it alone. Government’s job is to create the necessary ecosystem. On the other hand private sector and innovators will develop various applications and services.
This advisor of the Ministry of Information Technology said that the fourth pillar of the government’s strategy is the development of the electronics and consumer electronics industry.
According to him, similar benefits will be given to these two sectors in the next 10 years to encourage investment and production growth.
He also expressed optimism that Bangladesh can become an important partner at the global level by 2030 if policy continuity and sustainable support continue.
He said the government will continue to work closely with telecom operators, suppliers, innovators, investors and regulatory bodies to advance the country’s digital transformation.
“We all have to work together as partners,” said the telecommunications consultant. At the same time, he assured the participants that the government would be open to their views and continue to support the development of the sector.
The budget for the financial year 2026-27 has put in place several financial incentives to encourage electronics, digital devices and semiconductor manufacturing industries.
The facility of duty exemption on import of raw materials of various digital products including mobile phones, refrigerators, air conditioners, washing machines, CCTV cameras, computers has been extended till June 30, 2030.
Regulatory duties, supplementary duties, value added tax (VAT) and advance tax are waived on raw materials used in chip design, testing and packaging to develop the semiconductor industry. Till June 30, 2031, only one percent import duty will be applicable on these products.
Apart from this, the conditional VAT exemption on manufacturing and assembly of mobile phones, computers and technology products has been extended till June 30, 2030.
VAT on locally manufactured refrigerators, freezers, air conditioners and compressors has been reduced from 15 percent to 7.5 percent, which will remain in effect for the same period.
Apart from this, advance income tax (AIT) rate on 22 types of raw materials used in mobile phone production has been reduced to 1 percent. An additional 5 percent import duty on important raw materials for the production of smart cards and bank cards has also been withdrawn.
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