Bangladesh’s proposed 2026–27 national budget introduces major tax reductions for the telecommunications industry, aiming to establish it as a national “thrust sector.” The budget proposes full withdrawal of the fixed Tk 300 tax on mobile SIMs, which is expected to reduce government revenue by about Tk 1,200 crore in the next fiscal year. It also suggests removing the 20 percent withholding tax on revenue shares, license fees, and other charges collected by the Bangladesh Telecommunication Regulatory Commission (BTRC). Additionally, import duties on 22 types of raw materials used in mobile handset production would be reduced to 1 percent.

The proposal extends the conditional VAT exemption for mobile phone manufacturing and assembly until June 30, 2030. The government has also initiated efforts to expand 5G coverage to 90 percent of the population within two years and ensure broadband speeds between 100 Mbps and 1 Gbps nationwide. The budget speech emphasized that telecom tax, VAT, and licensing policies will undergo major reforms to align with international standards.

Currently, ICT and telecom contribute only 1–2 percent to GDP, but the government targets a 10 percent share within five years through planned reforms and investment.