New Research Shows Mobile Tax Reform Could Accelerate Economic Gains in Bangladesh and Pakistan

VEON (Nasdaq: VEON) highlighted a new Frontier Economics report on how mobile tax reform in Bangladesh and Pakistan could accelerate digitalization, GDP growth and government revenues.

Rhea-AI Summary

VEON (Nasdaq: VEON) highlighted a new Frontier Economics report on how mobile tax reform in Bangladesh and Pakistan could accelerate digitalization, GDP growth and government revenues.

The modelling suggests that cutting sector-specific mobile taxes and boosting penetration can lift GDP per capita growth and, by 2030–2031, increase overall tax receipts.

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Key Figures

Bangladesh mobile tax rate: 47% Pakistan mobile tax rate: 37% Bangladesh tax after reform: 23% +5 more

Bangladesh mobile tax rate

47%

Share of mobile service revenues subject to sector-specific taxes

Pakistan mobile tax rate

37%

Share of mobile service revenues subject to sector-specific taxes

Bangladesh tax after reform

23%

Modeled combined sales and turnover taxes on mobile services

Pakistan tax after reform

17%

Modeled combined sales and turnover taxes on mobile services

Bangladesh GDP per capita growth (baseline)

6.6%

Annual real GDP per capita growth before mobile tax reform

Bangladesh GDP per capita growth (reform)

7.2%

Modeled annual real GDP per capita growth with tax rationalization

Pakistan GDP per capita growth (baseline)

4.2%

Annual real GDP per capita growth before mobile tax reform

Pakistan GDP per capita growth (reform)

4.5%

Modeled annual real GDP per capita growth with tax rationalization

Historical Context

5 past events · Latest: May 19

5 events

1. May 19

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   Priced USD 1.4B multi-tranche bond to refinance debt and extend maturities.

2. May 18

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   Announced investor meetings for dual-tranche notes and tender for 2027 debt.

3. May 13

   1Q26 earnings beat

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   Reported strong 1Q26 growth, higher guidance, and rising digital revenue mix.

4. May 11

   AGM and FY25 results

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   Shareholders re-elected board; FY25 revenue and EBITDA grew with higher margin.

5. May 06

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   Kyivstar authorized to resell Starlink services and hardware across Ukraine.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gdp per capita, mobile penetration, financial inclusion, mobile money platforms

4 terms

gdp per capita financial

"In Bangladesh, the annual real growth rate of GDP per capita would rise from approximately 6.6% to 7.2%;"

Gross Domestic Product (GDP) per capita measures the total value of goods and services a country produces divided by its population, giving an average output per person. For investors, it’s a quick way to gauge how wealthy or productive a country’s residents are—like the size of a pie each person could claim—which helps predict consumer demand, growth potential, and relative economic risk when comparing markets.

mobile penetration financial

"could increase mobile penetration and usage, accelerating GDP per capita growth."

Mobile penetration measures the share of a defined group—such as a country’s population or a target market—that uses mobile phones or mobile internet services. Investors use it like a census of potential customers: higher penetration means a larger ready audience for apps, advertising, subscriptions or mobile commerce, which can drive sales growth and scale while lower penetration signals more room for future user and revenue expansion.

financial inclusion financial

"Mobile connectivity is a critical enabler of financial inclusion in both countries,"

Access for individuals and small businesses to affordable, reliable financial services—such as bank accounts, payment tools, credit, insurance and basic savings—so people who were previously excluded can participate in the formal economy. It matters to investors because broader access widens the pool of customers, creates new revenue streams, improves data on borrower behavior, and can lower risk by moving activity out of informal channels—like unlocking new rooms in a house that increase its overall value.

mobile money platforms financial

"where mobile money platforms are already transforming access to financial services."

Mobile money platforms are smartphone or feature‑phone services that let people send, receive, store and pay with digital cash without needing a traditional bank branch—think of them as a digital wallet and cashier in your pocket. They matter to investors because they can drive large, recurring transaction volumes, new fee and lending revenue, and rapid customer growth, while also exposing companies to regulation, fraud and competition risks that affect profitability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Frontier Economics report demonstrates how reducing mobile-specific taxation can accelerate digital development and expand government revenues

Dubai, May 26, 2026 – VEON Ltd. (Nasdaq: VEON), a global digital operator, marks the publication of a new independent economic report examining how mobile sector tax reform in South Asia can accelerate digital transformation, drive economic growth, and strengthen government revenues.

The report, titled “Unlocking Digital Growth by Reducing Sector Taxation in Bangladesh and Pakistan”, prepared by Frontier Economics underscores the critical role of mobile industry tax rationalization can play for the expansion of digital economy in Pakistan and Bangladesh, ultimately leading to a more robust revenue generation for governments.

Bangladesh and Pakistan are mobile-first economies where mobile networks are the primary route through which households and businesses access digital services, banking, and formal economic activity. Yet both countries levy sector-specific mobile taxes that are among the highest in the world, at 47% of mobile service revenues in Bangladesh and 37% in Pakistan, compared to the regional and global averages significantly below these levels.

The Frontier Economics analysis provides rigorous economic modelling that demonstrates how tax rationalization in these markets can support digital development goals that underpin the broader growth agendas of both governments by reducing the barriers to adoption and investment.

Key findings in the Frontier Economics analysis include:

• Reducing combined sales and turnover taxes on mobile services from 47% to 23% in Bangladesh and from 37% to 17% in Pakistan could increase mobile penetration and usage, accelerating GDP per capita growth. In Bangladesh, the annual real growth rate of GDP per capita would rise from approximately 6.6% to 7.2%; in Pakistan, from 4.2% to 4.5% in the medium term.
• The scenarios modeled in the report demonstrate that the initial reduction in mobile sector tax revenues would quickly be offset by broader economic growth, with government tax revenues surpassing baseline levels by 2030 in Bangladesh and by 2031 in Pakistan.

• A 1% increase in mobile penetration is associated with a 0.115 percentage point increase in GDP per capita growth – a figure Frontier Economics notes may have grown over time as mobile connectivity has become more deeply embedded in economic activity.
• Mobile connectivity is a critical enabler of financial inclusion in both countries, where mobile money platforms are already transforming access to financial services. Reducing tax barriers to the mobile industry's growth would accelerate this transformation at scale.

“Mobile connectivity is the foundation of digital access and economic development in frontier markets like Bangladesh and Pakistan,” said Clive Kenny, Senior Principal at Frontier Economics. “This independent research demonstrates that reducing excessive sector-specific mobile taxes can unlock substantial economic benefits, expand government revenues over the medium term, and support the digital transformation goals of both countries.”

“In markets like Bangladesh and Pakistan, mobile connectivity is not a premium service - it is the primary route to economic participation for hundreds of millions of people. The Frontier Economics findings confirm what we see every day through Jazz and Banglalink: when barriers to mobile access come down, digital financial services reach further, small businesses grow faster, and governments collect more. VEON is committed to being a long-term partner to the national development strategies of every country we serve,” said Kaan Terzioglu, CEO of VEON Group.

The research was commissioned by VEON and conducted fully independently by Frontier Economics. The full report can be accessed here.

About VEON
VEON is a digital operator that provides connectivity and digital services to over 150 million connectivity customers and more than 228 million digital users. Operating across five countries that are home to more than 6% of the world’s population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. VEON is listed on NASDAQ. For more information, visit: https://www.veon.com/. 

Forward-Looking Statements

This press release contains “forward-looking statements,” as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements relating to, among other things, the potential impacts of mobile sector tax reform in Pakistan and Bangladesh and VEON's business plans in these markets. There are numerous risks and uncertainties that could cause actual results and performance to differ materially from those expressed by such statements, including failure by the governments of Pakistan and Bangladesh to implement the contemplated policy reforms, the projected economic impacts modelled by Frontier Economics failing to materialize, among others discussed in the section entitled “Risk Factors” included in VEON’s annual report on Form 20-F with the U.S. Securities and exchange Commission (“SEC”) on March 16, 2026, as amended and supplemented from time to time, and in any other subsequent filings with the SEC by VEON. The forward-looking statements contained herein speak only as of the date of this release and VEON disclaims any obligation to update them, except as required by applicable laws.

VEON press contact
pr@veon.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What does the new Frontier Economics mobile tax report mean for VEON (Nasdaq: VEON) investors?

The report outlines how mobile tax cuts in Bangladesh and Pakistan could expand digital usage and economic activity. According to VEON, higher mobile penetration may support long-term sector growth, benefiting its Jazz and Banglalink operations as digital services and financial inclusion scale.

What mobile tax reductions does the research propose for Bangladesh and Pakistan in relation to VEON (VEON)?

The study models cutting combined sales and turnover taxes from 47% to 23% in Bangladesh and 37% to 17% in Pakistan. According to VEON, these reductions could raise mobile adoption, support GDP per capita growth, and ultimately increase governments’ total tax revenues over time.

How could mobile tax reform affect GDP per capita growth in Bangladesh and Pakistan according to VEON (VEON)?

The modelling shows Bangladesh’s real GDP per capita growth rising from about 6.6% to 7.2%, and Pakistan’s from 4.2% to 4.5%. According to VEON, this uplift stems from higher mobile penetration, investment, and usage enabled by lower sector-specific taxation levels.

When could government tax revenues surpass baseline levels under the VEON mobile tax reform scenarios?

Under the modelled scenarios, total government tax revenues exceed baseline levels by 2030 in Bangladesh and by 2031 in Pakistan. According to VEON, initial mobile tax cuts are offset as wider economic growth and digital activity expand the overall tax base.

How is mobile penetration linked to GDP growth in VEON’s Frontier Economics study?

The research associates a 1% increase in mobile penetration with a 0.115 percentage point rise in GDP per capita growth. According to VEON, this relationship may have strengthened as mobile connectivity has become more embedded in everyday economic and financial activities.

Why did VEON (VEON) commission research on mobile sector taxation in Bangladesh and Pakistan?

VEON commissioned Frontier Economics to analyze how mobile-specific taxes influence digital transformation, economic growth, and fiscal revenues. According to VEON, the findings support its view that lowering excessive sector taxes can expand digital financial services and align with national development strategies.

How could lower mobile taxes support digital financial inclusion in VEON’s key markets?

The report notes that mobile connectivity underpins financial inclusion, with mobile money already transforming access to services. According to VEON, reducing tax barriers could accelerate adoption of digital financial services through operators like Jazz and Banglalink, reaching more households and small businesses.