The government has proposed abolishing the longstanding Tk 300 tax on mobile SIM cards while introducing a 15 per cent value-added tax (VAT) on the supply price of SIMs and e-SIMs in the national budget for fiscal year 2026-27.
Presenting the budget in parliament on Thursday, Finance Minister Amir Khosru Mahmud Chowdhury said the government was pursuing extensive reforms in taxation, VAT and licensing policies to support the information and communication technology (ICT) sector, which has been designated as a thrust sector for economic growth.
He noted that the effective tax burden in the telecommunications sector remains around 50 per cent, while the information technology sector faces a tax rate of about 25 per cent, significantly higher than in many other countries.
"To promote the development of the sector, the government has taken initiatives to gradually reduce these taxes to a reasonable level," the minister said.
As part of the reform measures, the finance minister proposed the complete withdrawal of the Tk 300 tax imposed on every mobile SIM card to make mobile services more affordable and accessible.
The proposed measure is expected to result in a revenue loss of around Tk 12 billion in the next fiscal year, he said.
However, according to the Finance Bill, the government plans to impose a 15 per cent VAT on the supply price of each SIM card and e-SIM.
The budget also proposes reducing the withholding tax on mobile network services from 12 per cent to 10 per cent. In addition, the existing 20 per cent withholding tax on revenue-sharing payments, licence fees and charges received by the Bangladesh Telecommunication Regulatory Commission (BTRC) has been withdrawn.
Telecom operators welcomed the proposed measures, particularly the removal of the SIM tax, which they have long argued acts as a barrier to mobile adoption and digital inclusion.
Shahed Alam, Chief Corporate and Regulatory Officer of Robi Axiata PLC, described the withdrawal of the SIM tax as a positive step towards expanding digital connectivity.
He said the measure could help bring nearly 40 per cent of the population that remains outside the digital ecosystem into the network, improving access to education, healthcare, financial services and economic opportunities.
Welcoming the government's initiatives, Taimur Rahman, Chief Corporate and Regulatory Affairs Officer of Banglalink, said recognising telecommunications as a national thrust sector and reducing certain taxes would help accelerate digital inclusion, attract investment and advance the country's digital transformation agenda.
"Banglalink remains committed to supporting this journey and creating a better life for all through connectivity and technology," he added.
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