VAT on Mobile Phone SIM Cards Set to Rise by Tk 100

The Bangladesh Telecommunication Regulatory Commission (BTRC) has reduced broadband prices by Tk 100, lowering monthly fees for 5 Mbps, 10 Mbps, and 20 Mbps packages to Tk 400, Tk 700, and Tk 1,100 respectively.

The BTRC's draft telecom policy proposes consolidating over 20 licence types into three—NICSP, ICSP, and ANSP—aiming to simplify regulations and attract foreign investment. However, experts warn it may entrench monopolies, as it permits up to 100% foreign ownership in ANSP, 70% in NICSP, and 49% in ICSP without limiting cross-ownership, enabling dominant players like Axiata, Telenor, and Veon to hold stakes across all categories.

The National Cyber Security Agency (NCSA) has directed the Bangladesh Telecommunication Regulatory Commission (BTRC) to block all websites and social media handles linked to the Awami League and its affiliated bodies, citing the Cyber Security Ordinance, 2025.

Bangladesh's telecom sector, contributing just 1% to GDP but 5% to total tax revenue, faces unsustainable fiscal pressure due to high taxation and complex regulations. Average Revenue Per User (ARPU) has fallen 56% over a decade to $1.3—among the world’s lowest—while mobile users bear a 39% total tax burden, including 18% VAT, 20% supplementary duty, and 1% surcharge.

The BTRC’s draft Telecommunication Network & Licensing Regime Reform Policy 2025 aims to streamline Bangladesh’s telecom licensing by consolidating over 20 licence types into three main categories: National Infrastructure & Connectivity Service Provider (NICSP), International Connectivity Service Provider (ICSP), and Access Network Service Provider (ANSP).

Bangladesh’s interim government expects mobile network operators (MNOs) to soon reduce mobile internet prices following significant wholesale price cuts across the internet value chain. According to Faiz Ahmad Taiyeb, the chief adviser's special assistant, the government has already lowered costs at the International Terrestrial Cable, International Internet Gateway, and National Telecommunication Transmission Network levels.