Budget FY27: Govt set to propose withdrawal of tax on SIM card

The government is set to withdraw the Tk300 tax imposed on
mobile SIM cards as part of broader efforts to support the growth of the
information and communication technology (ICT) sector and make mobile services
more affordable for the general public.
The proposal has been placed in the
upcoming national budget for FY2026-27, officials familiar with the matter
said, ahead of its formal presentation in Parliament today (11 June).
The move is expected to reduce the
overall tax burden in the telecom sector currently estimated at nearly 50% and
improve access to mobile connectivity across the country.
Under the proposal, the Tk300 levy on each mobile SIM will
be fully abolished. Policymakers believe this will directly lower entry and
usage costs for mobile subscribers, particularly in low-income and rural
segments where affordability remains a key barrier to digital inclusion.
However, the decision is projected
to have a significant fiscal impact. According to estimates, government revenue
may decline by around Tk1,200 crore in the next fiscal year due to the removal
of the tax.
Officials argue that despite the
revenue loss, the policy shift is aimed at expanding the digital ecosystem and
increasing long-term tax bases through higher mobile penetration, data usage,
and ICT-driven economic activity.
At present, the telecom sector
carries one of the highest tax burdens in Bangladesh, with an effective tax
rate of around 57%, while the ICT sector faces roughly 25% taxation both
significantly higher compared to many peer economies.
Industry stakeholders have long
maintained that high taxation on telecom services discourages usage growth and
limits digital expansion, particularly at a time when mobile connectivity is
increasingly linked to financial inclusion, education, and e-governance
services.
If approved, the new policy will
take effect from 1 July 2026, potentially marking one of the most significant
tax rationalisation measures in the country's telecom history.
















