The government is likely to scrap taxes on new SIM cards and SIM replacements entirely in the upcoming budget, a move aimed at making mobile services more affordable for low-income people who do not currently own a handset, according to finance ministry officials.
They say this would also allow telecom operators to redirect funds now used to subsidise SIM sales towards expanding their networks.
At present, a Tk 300 tax is imposed on both new SIM cards and SIM replacements.
Officials said the proposal is part of a broader government effort to reduce costs for consumers and remove barriers to digital inclusion, particularly for low-income households and rural communities that remain outside formal connectivity.
“We are working on it [SIM tax], which is currently under consideration,” said a senior finance ministry official, adding that the decision would be finalised after the ministry approves the budget summary.
Finance Minister Amir Khosru Mahmud Chowdhury is expected to place the proposal before parliament on June 11.
The proposal to withdraw SIM tax gathered momentum after Prime Minister Tarique Rahman gave his in-principle approval on May 14 after a high-level meeting at the Secretariat.
According to National Board of Revenue (NBR) sources, the board received the proposal from the Bangladesh Telecommunication Regulatory Commission (BTRC) last month.
Shahed Alam, chief corporate and regulatory officer of Robi Axiata PLC, welcomed the proposal, saying the levy has become a major barrier to digital inclusion.
“A reduction in the SIM tax would eventually lower the cost of entry into mobile services and encourage wider adoption, especially among low-income and first-time users,” he said.
“Reducing the SIM tax could help bring millions more people online, expanding access to education, healthcare, financial services, employment opportunities, and government services, while supporting the country’s broader digital transformation agenda,” Alam added.
The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has long been lobbying for the withdrawal of the tax, sending multiple letters to both the BTRC and the NBR over the years.
According to the association, the SIM tax discourages connectivity, especially among low-income users.
At several events, Rehan Asad, adviser to the prime minister on ICT and telecom, said that the country’s telecom sector remains one of the most heavily taxed industries.
He said the government is working to reduce the burden, which ultimately affects customers and service quality.
The adviser to the prime minister also mentioned that telecom taxation would be rationalised gradually to support greater investment, wider connectivity and digital transformation.
Earlier, the GSMA, a global association of mobile operators, urged the revenue board to abolish SIM-related taxes in the upcoming budget.
The organisation said its recommendations align with the Bangladesh government’s Vision 2030, which identifies ICT as a priority sector and aims to establish it as the country’s leading foreign exchange earner.
GSMA also noted that taxing SIM replacements is unfair because customers must pay again when replacing lost or damaged SIMs or when upgrading technology. It further opposed applying the same tax to Internet of Things (IoT) connections.
