The government is considering reducing taxes on new SIM card issuance and removing taxes on replacement SIMs and IoT connections to help expand the country’s telecommunications sector.
According to officials, the proposal is now under review by the National Board of Revenue following recommendations from the Bangladesh Telecommunication Regulatory Commission.
The recommendations were discussed at a high-level meeting attended by officials from the telecom division, NBR and other government agencies.
BTRC said the existing tax structure has become a major obstacle to attracting new mobile subscribers and expanding digital services.
According to the regulator, mobile operators currently spend around Tk 700 to activate a new SIM connection, with Tk 300 going directly to SIM tax.
The commission said operators often take months to recover the cost of acquiring a new customer because of low average monthly earnings from subscribers.
BTRC also recommended removing taxes on replacement SIMs, arguing that such SIMs do not create new users or additional income for operators.
The regulator further proposed abolishing taxes on Internet of Things and Machine-to-Machine SIMs to support digital transformation and smart technology expansion.
Officials said lower taxes could help boost the use of smart devices in sectors including agriculture, logistics, industry and smart city services.
According to BTRC, Bangladesh currently has one of the highest tax burdens on mobile services compared with many other countries.
