The government has unveiled an ambitious telecommunications reform plan aimed at expanding digital connectivity, creating jobs and boosting the contribution of the Information and Communication Technology (ICT) sector to the national economy.
Announcing the initiatives in the proposed budget for fiscal year 2026-27, Finance Minister Amir Khosru Mahmud Chowdhury said the government aims to bring 5G services under 90 per cent population coverage and ensure broadband internet speeds of 100 Mbps across the country.
He said the targets form part of a broader reform programme designed to raise internet services to global standards through the participation of mobile operators and fixed broadband service providers.
To support high-speed and affordable internet access in rural and remote areas, the government is establishing a National Fibre Bank. The initiative seeks to strengthen digital connectivity nationwide and reduce the urban-rural digital divide.
Official data show Bangladesh had 131.42 million internet subscribers in April 2026. Of them, 116.47 million used mobile internet services, while 14.95 million accessed the internet through ISP and PSTN connections.
The finance minister said the government is placing special emphasis on utilising the skills and innovation of young people to promote start-ups, freelancing and digital entrepreneurship. As part of this strategy, the ICT and Telecommunications sector has been identified as a thrust sector, with a target to increase its contribution to Gross Domestic Product (GDP) from the current 1-2 per cent to 10 per cent within the next five years.
He said the government plans to create 200,000 new jobs annually in the technology sector. It also aims to generate another 800,000 indirect employment opportunities through freelancing and creative industry training at colleges and universities.
To accelerate growth in freelancing and outsourcing, the proposed budget extends income tax exemptions from IT freelancing earnings to all categories of freelancing income. The finance minister said the move would encourage freelancers to bring their earnings into the country through formal banking channels.
The budget also proposes full income tax exemption for earnings from content creation. In addition, content creators and freelancers will receive complete exemption from the existing 15 percent Value Added Tax (VAT) on their services.
To strengthen the start-up ecosystem, registered start-up enterprises will enjoy VAT exemptions on services, imported services and premises rent until 30 June 2035. The government has also proposed a zero percent turnover tax rate for start-ups and technology-based businesses.
The proposed budget includes a Tk500 crore Startup Fund to support new entrepreneurs in the information technology sector. The fund will place particular emphasis on women entrepreneurs and young innovators.
The finance minister said the allocation reflects the government’s commitment to supporting entrepreneurship and innovation-driven economic growth.
As part of efforts to improve global competitiveness, the government is introducing a Smart Skill Bank and a verification programme to provide internationally recognised digital certificates to skilled workers.
The government will also engage 1,000 foreign expert trainers and 7,500 local trainers to strengthen technical institutions, polytechnics and workforce development programmes.
To improve efficiency and transparency in digital services, implementation of the “One Citizen, One ID, One Digital Wallet” system is underway. The initiative will allow citizens to access public and private services through a single digital identity.
The government has also proposed withdrawing the existing Tk300 tax on mobile SIM cards to expand access to telecommunications services and promote digital inclusion.
Reacting to the proposed measures, Bangladesh Women in Technology Vice-President Engineer Taslima Akter said the budget had removed numerous barriers that could significantly boost economic activity and accelerate growth.
She congratulated Prime Minister Tarique Rahman and Finance Minister Amir Khosru Mahmud Chowdhury, expressing confidence in the success of the initiatives.
