New Research Shows Mobile Tax Reform Could Accelerate Economic Gains in Bangladesh and Pakistan
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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News Market Reaction – VEON
In the May 26 session, VEON gained 0.02%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 19 | Bond offering priced | Positive | -0.1% | Priced USD 1.4B multi-tranche bond to refinance debt and extend maturities. |
| May 18 | Planned notes offering | Neutral | +0.5% | Announced investor meetings for dual-tranche notes and tender for 2027 debt. |
| May 13 | 1Q26 earnings beat | Positive | +13.8% | Reported strong 1Q26 growth, higher guidance, and rising digital revenue mix. |
| May 11 | AGM and FY25 results | Positive | +1.1% | Shareholders re-elected board; FY25 revenue and EBITDA grew with higher margin. |
| May 06 | Starlink partnership | Positive | -0.0% | 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.
Recent fundamentally positive updates (earnings, AGM, strategy) have mostly seen aligned modest-to-strong gains, while capital structure moves and certain strategic news occasionally met with flat or slightly negative reactions.
Over the past month, VEON has reported a strong start to 2026, with 1Q26 revenue and EBITDA growth and raised full-year guidance, which was followed by a 13.78% gain after the May 13 earnings release. Governance continuity and solid FY25 metrics at the May 11 AGM also saw a positive reaction. Capital structure actions, including a USD bond offering and related tender for 2027 notes, produced relatively muted price moves. The current policy-focused South Asia tax report aligns with VEON’s digital-operator positioning but lacks a direct balance-sheet or guidance impact.
Key Terms
gdp per capita financial
mobile penetration financial
financial inclusion financial
mobile money platforms financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
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% to23% in Bangladesh and from37% to17% 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 approximately6.6% to7.2% ; in Pakistan, from4.2% to4.5% 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.
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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
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.
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