SANGSAD BHABAN, June 11, 2026 (BSS) - 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 (FY) 2026-27 in the 
Jatiya Sangsad (JS), Finance Minister Amir Khosru Mahmud Chowdhury today 
proposed reducing Advance Income Tax (AIT) on the import of 22 raw materials 
used in local mobile phone manufacturing from 5 percent and 2 percent to 1 
percent, 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 June 30, 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 percent to 10 percent.

The budget also proposes the complete withdrawal of the 20 percent 
withholding tax on revenue sharing, license fees and charges received by the 
Bangladesh Telecommunication Regulatory Commission (BTRC).

In addition, the Taka 300 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card has been fully withdrawn to make mobile services more affordable and 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.