SIM tax withdrawal welcomed by mobile users' association

Mobile Users Association logo.

Dhaka, June 11 — The Bangladesh Mobile Phone Consumers' Association (BMPCA) has welcomed the government's decision to withdraw the Tk 300 tax on new SIM cards in the proposed national budget for fiscal year 2026–27, describing it as a positive step towards greater digital inclusion.

In a reaction to the budget issued on Thursday night, Association President Mohiuddin Ahmed said the move would benefit ordinary mobile users and help expand access to digital services across the country.

“The withdrawal of the SIM tax will make it easier for people to obtain new connections. It will provide significant relief, particularly for low-income groups, students and rural populations,” he said.

Mohiuddin noted that the decision would also accelerate the use of digital services, including mobile banking, online education and e-governance platforms.

However, he expressed concern that removing the SIM tax alone would not be sufficient to ensure meaningful relief for consumers.

“Mobile users are still burdened by the high rates of VAT, supplementary duty and other taxes imposed on mobile and internet services. These taxes continue to place a significant financial strain on consumers,” he said.

He said the government should reduce the excessive tax burden on telecom services, ensure affordable internet access, improve network quality in rural areas and take effective steps to expand broadband infrastructure to make the telecommunications sector truly consumer-friendly.

The association also urged the government to adopt a coordinated and long-term policy framework for the telecommunications sector to support the country's digital transformation goals.

It said such measures are essential to ensure that all citizens can access quality telecom and internet services at affordable prices. - UNB