The removal of the Tk300 tax on new mobile SIM cards in the latest budget was expected to reduce connection costs and expand digital access. But weeks after the measure came into effect, customers have yet to see a corresponding drop in SIM prices.
The delay has raised questions over whether the benefit of the tax relief is reaching users or mainly reducing the cost burden of mobile operators.
Telecom operators say the SIM tax was only one component of the total cost of acquiring a new subscriber. While its removal has lowered their customer acquisition subsidy requirements, other costs including distribution, retailer commissions, marketing, logistics and network operations continue to influence the final retail price.
The government scrapped the SIM tax in the FY2026-27 national budget as part of its effort to promote information and communications technology as a priority sector. The move is expected to reduce government revenue by around Tk1,200 crore annually.
However, customers have not yet seen any visible reduction in SIM prices.
Technology entrepreneur Fahim Mashroor criticised the policy outcome, saying the tax relief appeared to have benefited telecom operators more than consumers.
Operators argue that SIM prices cannot be reduced by the tax amount alone because the retail price includes several other expenses.
These include SIM chip costs, packaging, customer registration, distributor and retailer commissions, logistics, promotional campaigns and other commercial expenses.
Although the physical SIM card itself has a relatively low production cost, operators estimate the total cost of acquiring a new customer at around Tk550 to Tk600 after including distribution and service-related expenses.
With the tax removed, operators said the immediate impact would be a reduction in subsidy requirements rather than a direct Tk300 cut in SIM prices.
They said the savings could instead be used to introduce more attractive packages, additional voice and data benefits and targeted customer offers.
SIM prices currently vary widely among operators.
Grameenphone offers prepaid SIMs in seven categories, with most priced at Tk400 and a premium package at Tk497. Its postpaid SIM costs Tk1,499.
Robi’s prepaid SIM is available at Tk200, while Banglalink sells prepaid SIMs at Tk400.
State-owned Teletalk offers prepaid SIMs ranging from Tk100 to Tk250 depending on the package.
The listed prices also include bundled services such as voice minutes, mobile data and promotional benefits, making direct comparisons difficult.
Robi Chief Corporate and Regulatory Officer Shahed Alam said the removal of the SIM tax was a positive step towards expanding digital access, but the final retail price depended on several cost components beyond taxation.
He said SIM chips, distributor and retailer commissions, logistics, operational expenses and other commercial costs remained unchanged despite the tax withdrawal.
Robi is reviewing its commercial offers to ensure customers receive benefits from the policy change, he said, adding that the operator already provides promotional SIM packages priced at Tk200 with bundled voice and data benefits.
Banglalink has reduced the price of its youth-focused RYZE SIM by 33 per cent, according to its Chief Corporate and Regulatory Affairs Officer Taimur Rahman.
He said the initiative was aimed at making artificial intelligence-powered digital services and digital learning opportunities more accessible to young users.
Grameenphone said lower-priced SIM options would gradually enter the market after existing stocks carrying the previous tax are cleared.
Its Head of Communications Sharfuddin Ahmed Chowdhury said some SIM stocks with the earlier tax structure were still in circulation, while the operator was preparing to introduce more affordable options within two to three weeks.
Industry insiders said the tax removal was unlikely to trigger competition based only on headline SIM prices.
Instead, operators are expected to compete through larger data bundles, digital services and targeted customer acquisition offers rather than simply lowering the upfront price of SIM cards.
