Mobile Shops Shut Nationwide as Traders Protest NEIR, Seek Tax Reforms

DHAKA: Thousands of mobile phone shops, particularly across Dhaka’s key markets, remained shuttered today as part of a nationwide protest against the impending implementation of the National Equipment Identity Register (NEIR) system, set to go into effect on December 16.

NEIR, a system designed to block illegal, cloned, or unregistered mobile handsets from accessing mobile networks, is championed by the government to curb tax evasion and ensure national security. However, small traders argue the policy’s structure, coupled with existing tariff issues, will effectively wipe out their segment of the market.

The protest, announced by the Mobile Business Community Bangladesh (MBCB), rests on two core pillars of reform.

Tax Parity: A reduction in the current 58% import duty on fully built handsets. Traders argue this high rate forces them to deal in devices brought through unofficial channels, often via “luggage baggage.” They point out that local assemblers receive significant tax breaks, creating an unfair playing field.

End to Monopoly: The MBCB alleges that a syndicate of around 11 large businesses is controlling the formal import and distribution channels. The current requirements, such as obtaining a ‘mother company’s certificate’ (e.g., for importing an iPhone), make it practically impossible for small traders to import legally, thus forcing them to rely on the grey market and protecting the monopoly.

“We want the government to reduce the current tax rate and bring us under their rules and regulations,” said Md Kabir, a shop owner at Bashundhara City. MBCB acting president, Shamim Mollah, added, “NEIR must be restructured. We also want to pay tax. BTRC should also remove the barriers to importing phones legally.”

Notably, authorized sellers and local manufacturers did not participate in the shutdown, signaling a deep divide within the industry over the NEIR’s potential impact.