Finance Minister Amir Khosru Mahmud Chowdhury announced major reforms for Bangladesh’s telecommunications and information technology sectors in the proposed 2026–27 national budget. To accelerate digital transformation, the government plans to withdraw the SIM card tax, reduce local production taxes, and expand 5G coverage nationwide. The Tk 300 tax on each SIM card will be fully removed, leaving only a 15 percent tax, which is expected to make mobile services more affordable. The government anticipates a revenue loss of about Tk 1,200 crore from this decision.

To keep mobile phone prices within reach, the budget proposes cutting advance tax on 22 raw materials for local manufacturers from 5 and 2 percent to just 1 percent. The source tax on mobile network services will drop from 12 to 10 percent, likely reducing call and internet costs. Additionally, the 20 percent source tax on BTRC license fees will be withdrawn.

The minister said the government aims to bring 90 percent of the population under 5G coverage and ensure a minimum broadband speed of 100 Mbps. Work has already begun with 4.1 million new 4G connections and free high-speed internet at key trains and airports.