The proposed national budget has introduced a set of fiscal measures expected to reduce the cost of locally-manufactured mobile handsets and lower mobile telecommunication service expenses for consumers.
While unveiling the national budget of the fiscal year 2026-27 (FY27) in the Jatiya Sangsad, Finance Minister Amir Khosru Mahmud Chowdhury on Thursday proposed reducing Advance Income Tax (AIT) on the import of 22 raw materials used in local mobile phone manufacturing from 5% and 2% to 1%, a move aimed at lowering production costs and supporting affordable handset production.
Existing duty exemption facilities on mobile phone manufacturing raw materials have been extended until 30 June 2030 to encourage local production and export growth.
Conditional VAT exemptions for mobile phone manufacturing and assembly have also been extended until the same date.
On the service side, the withholding tax rate in the mobile network services sector has been reduced from 12% to 10%.
The budget also proposes the complete withdrawal of the 20% withholding tax on revenue sharing, licence fees and charges received by the Bangladesh Telecommunication Regulatory Commission (BTRC).
In addition, the Tk300 specific tax previously imposed on each mobile SIM card has been fully withdrawn to make mobile services more affordable and accessible.
According to budget documents, these combined reforms are expected to improve cost efficiency across the mobile ecosystem and contribute to reducing the overall financial burden on consumers.
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Design & Developed by: BD IT HOST
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12 June, 2026 
