Mobile SIM prices remain high despite 300 taka tax withdrawal as operators adjust subsidy models
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The Bangladeshi government’s decision to eliminate the 300-taka excise duty on mobile SIM cards in the 2026-27 national budget has failed to translate into lower costs for consumers, raising concerns over whether the intended benefits of the 1.2 billion taka revenue sacrifice are reaching the public. Despite the withdrawal of the tax, retail prices for prepaid SIM cards across the country remain largely unchanged, generally ranging between 200 and 400 taka.
The four major mobile network operators—Grameenphone, Robi, Banglalink, and the state-owned Teletalk—maintain that the final retail price of a SIM is not solely dictated by tax policy. Industry officials emphasize that the cost structure includes production expenses, such as the silicon chip, plastic casing, and packaging, alongside distributor and retailer commissions, customer registration fees, and network operational costs. Furthermore, operators often bundle SIM cards with prepaid data, minute, and SMS packages, which adds to the price point.
Mobile operators argue that they have historically provided subsidies to keep SIM prices competitive. Prior to the tax repeal, operators reported that the total cost to bring a new subscriber online hovered around 550 to 600 taka, a portion of which was absorbed by the companies as a subsidy. With the removal of the 300-taka tax, operators contend that their internal subsidy burden has decreased rather than creating a surplus that could be passed directly to the consumer.
Market strategies also vary significantly among the providers. Industry-leading operators, such as Grameenphone, tend to market toward users willing to pay higher entry costs, while smaller operators often use lower SIM prices as a tactical tool to acquire new market share. Officials from Grameenphone indicated that existing inventory purchased under the previous tax regime remains in the market, though they expect more affordable options to surface within weeks. Meanwhile, Banglalink has begun recalibrating its pricing, recently reducing the cost of its youth-oriented “Rise” SIM by 33 percent.
The government maintains that the tax incentive was intended to drive digital inclusion in a market that has seen its active mobile subscriber base climb to nearly 190 million, with 2.8 million new users added in the last three months alone. Government officials have acknowledged the gap between policy intent and market reality. According to Rehan Asif Asad, the Prime Minister’s advisor on Posts, Telecommunications and Information Technology, the government is currently engaged in discussions with operators to ensure the benefits of the tax cut are passed on to consumers.
Regulators at the Bangladesh Telecommunication Regulatory Commission (BTRC) suggest that the market is in a period of transition. BTRC Chairman Major General (Retd) Emdad-Ul-Bari noted that the removal of the tax is expected to foster healthier market competition, moving away from a system where top-tier operators dominated through heavy subsidies. While operators work to align their pricing structures, the government continues to monitor the situation, aiming to see clear, consumer-facing price adjustments within the coming months.
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