VEON Study: Reducing Mobile Taxes to 23%/17% Could Boost GDP Growth to 7.2%/4.5%
VEON•A Frontier Economics report for VEON models cutting mobile taxes from 47% to 23% in Bangladesh and 37% to 17% in Pakistan, projecting GDP per capita growth from 6.6% to 7.2% and 4.2% to 4.5%. It forecasts government revenues exceeding baselines by 2030 in Bangladesh and 2031 in Pakistan.
1. Report Overview
The Frontier Economics analysis commissioned by VEON examines reducing sector-specific mobile taxes in Bangladesh and Pakistan, calling for cuts from 47% to 23% and from 37% to 17%, respectively, to stimulate digital economy expansion.
2. Tax Reduction Scenarios
The report models scenarios where combined sales and turnover taxes on mobile services drop to the proposed levels, detailing impacts on mobile usage, penetration and investment incentives across both markets.
3. Economic Impact Projections
Models project Bangladesh’s GDP per capita growth rising from 6.6% to 7.2% and Pakistan’s from 4.2% to 4.5%, with government tax revenues recovering initial losses and exceeding baseline projections by 2030 in Bangladesh and 2031 in Pakistan.
4. Strategic Implications for VEON
Lower tax barriers are expected to boost mobile connectivity, expanding VEON’s customer base and digital service uptake via Jazz and Banglalink, while supporting VEON’s alignment with national digital transformation agendas.
