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.
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