Veon urges Bangladesh and Pakistan to cut telecoms taxes

Details: Manny Pham; Category: Regulation; 27 May 2026; 642 views

Veon criticised the high rate of taxation on the telecoms sector in Bangladesh and Pakistan, warning it risks slowing digital and economic growth in both countries.

The Dubai-based operator group, which owns Banglalink in Bangladesh and Jazz in Pakistan, pointed to new research from Frontier Economics arguing that lower mobile-specific taxes would ultimately generate greater long-term government revenues.

The report, titled Unlocking Digital Growth by Reducing Sector Taxation in Bangladesh and Pakistan, found the two countries impose some of the world’s highest telecoms-specific taxes. Mobile sector taxes account for 47% of service revenues in Bangladesh and 37% in Pakistan, far above regional and global averages.

According to the analysis, reducing combined sales and turnover taxes on mobile services to 23% in Bangladesh and 17% in Pakistan would increase mobile penetration, boost digital adoption and accelerate GDP growth.

Frontier Economics estimated Bangladesh’s annual GDP per capita growth rate could rise from 6.6% to 7.2%, while Pakistan’s could increase from 4.2% to 4.5% in the medium term.

The report also argued that although governments would initially see lower tax receipts from the telecoms sector, broader economic growth would offset the losses, with total tax revenues surpassing baseline levels by 2030 in Bangladesh and by 2031 in Pakistan.

Veon said the findings reinforce the importance of mobile connectivity in both markets, where smartphones and mobile networks remain the primary route for millions of people to access banking, digital services and the formal economy.

Group CEO Kaan Terzioglu said reducing barriers to mobile adoption would help expand digital financial services, support small businesses and strengthen long-term economic participation.