Proposed Budget Scraps Tk 300 SIM Tax

Mobile subscribers in Bangladesh could soon enjoy lower costs for obtaining new SIM cards, as the government has proposed the complete withdrawal of the existing Tk 300 SIM tax in the national budget for FY2026-27.

Presenting the budget in Parliament on Thursday, Finance Minister Amir Khasru Mahmud Chowdhury said the move is part of a broader effort to reduce the tax burden on the country's telecommunications and information technology sectors.

Reducing Barriers to Digital Access

According to the finance minister, Bangladesh's telecommunications sector currently faces an overall tax burden of nearly 50 percent, while the information technology sector bears approximately 25 percent taxation—both significantly higher than international benchmarks.

He noted that the government intends to gradually rationalize these tax rates to support industry growth and digital inclusion.

As part of that initiative, the proposed budget recommends eliminating the Tk 300 tax imposed on each new SIM card, making mobile connectivity more affordable for consumers.

Revenue Impact and Long-Term Benefits

Finance Ministry estimates suggest that removing the SIM tax could reduce government revenue by around Tk 1,200 crore annually.

However, policymakers believe the long-term benefits of expanding digital connectivity, increasing mobile adoption, and encouraging broader participation in the digital economy will outweigh the short-term revenue loss.

Officials from the Ministry of Posts, Telecommunications and Information Technology said the measure forms part of a wider reform agenda aimed at modernizing taxation, value-added tax (VAT), and licensing frameworks across the ICT and telecom sectors.

Industry Welcomes the Proposal

The country's mobile operators have welcomed the proposed tax relief.

Taimur Rahman said the government's telecom-friendly policies, particularly tax reductions and recognition of the sector as a national priority, would help accelerate digital inclusion and attract greater investment.

He expressed optimism that the reforms would strengthen Bangladesh's digital transformation and significantly increase the ICT and telecommunications sector's contribution to GDP over the next five years.

Meanwhile, Barrister Sahed Alam said the removal of the SIM tax could help bring nearly 40 percent of the country's currently unconnected population into the digital ecosystem.

According to him, greater connectivity would improve access to education, healthcare, financial services, and economic opportunities across the country.

Boost for Digital Economy

Industry stakeholders believe the tax exemption will encourage new subscriber growth, increase mobile internet usage, and support the continued expansion of Bangladesh's digital economy.

They also argue that while government revenues may decline in the short term, broader digital adoption and increased economic activity could generate greater long-term returns for both the economy and public finances.

//DBTech/SH/MUIM/OR//