DHAKA, April 27, 2026 (BSS) – The Association of Mobile Telecom Operators of Bangladesh (AMTOB) today urged sweeping tax reforms in the telecommunications sector, warning that the current fiscal structure is undermining industry sustainability and slowing digital inclusion.

Speaking at a pre-budget meeting with the National Board of Revenue (NBR) at NBR Bhaban in the city, AMTOB Secretary General Lt. Col. Mohammad Zulfiqar (Retd.) said mobile operators currently surrender nearly 56 percent of their gross revenue to the government through various taxes and VAT, a burden that further escalates during spectrum auctions.

He noted that despite heavy investments, the sector’s revenue and profitability remain disproportionately low. 

The Average Revenue per User (ARPU) stands at around TK 150, reflecting limited returns in a highly fragmented telecom ecosystem, he added.

“While voice and internet services are relatively affordable, the existing tax regime is constraining both operators and consumers, raising concerns about long-term sustainability,” he said.

During the discussion, AMTOB placed a set of 23 proposals, highlighting several key reform priorities.

AMTOB proposed the abolition of the 20 percent supplementary duty and one  percent surcharge on telecom services, arguing that these taxes act as barriers to wider digital access.

The association also called for the withdrawal of the TK  300 VAT on SIM and e-SIM issuance and replacement, saying the charge discourages connectivity, particularly among low-income users.

In addition, AMTOB urged the government to eliminate VAT on spectrum allocation, noting that the current system results in double taxation as operators are taxed again when delivering services using the same spectrum.

The body further recommended reducing corporate tax rates for mobile operators, which currently stand at 40 percent for listed companies and 45 percent for unlisted ones—levels it described as uncompetitive compared to other sectors and global standards.

Finally, AMTOB called for the withdrawal of the 10 percent supplementary duty on over-the-top (OTT) services, saying such a move would encourage digital content consumption and support grassroots-level creators.