Streaming movies and shows? Get ready to pay more

A 10 percent supplementary duty has been proposed on over-the-top (OTT) platform services in the national budget for the 2025–26 fiscal year, meaning consumers may soon have to pay more to watch movies, series, and other content online.

Finance Advisor Salehuddin Ahmed made the proposal during his budget speech on Monday.

Industry insiders say the new duty could throttle the booming OTT platform services in Bangladesh.

Mohammad Ali Haider, head of content at local OTT platform Bongo, said: “This move will spell trouble for the country’s OTT industry. The OTT sector here is still in its early stages—it hasn’t fully matured yet. It’s just beginning to find its footing.

“Imposing such a tax on an industry that's trying to grow will only cause damage.”

Currently, OTT platforms pay 2 percent advance income tax and 15 percent VAT. If this new 10 percent supplementary duty is added, it will lead to a significant increase in the subscription fees, which the consumers will ultimately bear, according to Haider.

"It would be like choking an industry that’s just starting to breathe.”

Redoan Rony, CEO of popular platform Chorki, expressed uncertainty over whether the supplementary duty would apply equally to foreign and domestic OTT platforms.

“There are just a few local OTT platforms trying to build a foundation with fresh investments. If this duty is implemented now, we won’t be able to stand.

“We’re already having to compete with big-budget foreign content. It’s unclear whether these foreign OTT platforms will also be subject to the same tax or not. We’re still in the dark about the full implications.

Local OTT platforms plan to discuss the proposed measures among themselves before raising the issue with the government through the media, according to Rony.

"Since this is still a proposal, we’ll once again demand that OTT services be made tax-free.”

According to Statista, the OTT market in Bangladesh is expected to be worth Tk 30 billion by 2025.

Rony also noted that over 300 million Bengali-speaking people across the globe consume Bangladeshi OTT content, presenting a huge source for foreign revenue.

“By imposing taxes without considering this potential, the government is essentially planning to kill the industry.”

OTT platforms gained major popularity in Bangladesh during the COVID-19 lockdowns, similar to other parts of the world. Since then, local platforms have grown in both content and viewer base, competing with global giants.

Currently, platforms like Chorki, Bongo, Bioscope, Binge, iScreen, and Deepto Play are offering regular content to local audiences. At the same time, global players like Hoichoi and Netflix remain popular in the Bangladeshi market.