AMTOB welcomes SIM tax reform, demands more changes

The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has welcomed the government's proposal to replace the specific tax on mobile SIM cards with an ad valorem VAT based on the selling price, calling it a timely initiative. However, the organisation has also demanded several further reforms for the sustainable development of the telecommunications sector.

AMTOB Secretary General Lieutenant Colonel Mohammad Zulfikar (retd) said the proposed budget for the 2026-27 fiscal year, presented in the National Parliament on Thursday, June 11, proposes withdrawing the existing specific tax on SIM cards and imposing a 15 per cent VAT on the selling price.

In his view, this change will play a positive role in including the country's approximately 40 per cent marginalised population—who remain outside telecommunications services—and will accelerate digital progress.

However, he called on the government to reconsider several issues for the sector's further development. These include reducing the tax burden on consumers, lowering corporate tax rates to a rational level, withdrawing VAT on spectrum, and abolishing the supplementary duty imposed on OTT services.