VEON has urged the governments of Bangladesh and Pakistan to reduce taxation on telecommunications services, arguing that lower sector taxes could accelerate digital adoption, improve connectivity access, and support broader economic growth.
The call comes as telecom operators across emerging markets face increasing pressure to invest in network expansion, 4G and 5G deployment, fiber infrastructure, and digital services while operating within heavily taxed regulatory environments.
According to VEON, reducing the tax burden on telecommunications could stimulate greater usage, increase affordability, and strengthen the long-term development of digital economies in both countries.
High Telecom Taxes Seen as Barrier to Digital Inclusion
Telecommunications taxes remain a significant concern for operators and industry associations across many emerging markets, where consumers often face multiple layers of taxation on devices, services, and connectivity.
Industry stakeholders argue that high taxes can limit smartphone adoption, reduce broadband usage, and slow digital inclusion efforts, particularly among lower-income populations.
For countries such as Pakistan and Bangladesh, where large portions of the population remain underserved or underconnected, affordability continues to be a key factor influencing internet adoption rates.
Telecom operators have consistently advocated for more investment-friendly regulatory environments to support network expansion and digital transformation initiatives.
Digital Infrastructure Investment Requires Sustainable Economics
The telecommunications sector is undergoing a capital-intensive transformation driven by rising demand for mobile broadband, cloud services, AI applications, streaming platforms, and digital financial services.
Operators are expected to continue investing billions in network modernization, fiber deployment, cybersecurity, and future 5G infrastructure.
VEON emphasized that supportive fiscal policies can help create stronger conditions for infrastructure investment while expanding access to digital services for consumers and businesses.
The company noted that telecommunications infrastructure plays a critical role in supporting economic development, financial inclusion, education, healthcare, and government digitalization programmes.
South Asia Continues Expanding Digital Economy Ambitions
Both Bangladesh and Pakistan have identified digital transformation as a strategic national priority, with governments investing in connectivity expansion, digital public services, fintech ecosystems, and technology innovation.
However, industry leaders continue to highlight affordability challenges as a major obstacle to achieving broader digital inclusion objectives.
Reducing sector-specific taxes has increasingly become part of regional discussions around accelerating broadband adoption and improving competitiveness within the global digital economy.
As demand for connectivity continues to grow, policymakers are balancing revenue considerations with the need to encourage infrastructure investment and digital participation.
Editor’s Note
The debate around telecom taxation is becoming increasingly important as connectivity evolves from a consumer service into critical national infrastructure. Countries seeking to accelerate digital inclusion, AI adoption, and economic modernization may find that lower barriers to connectivity generate broader long-term economic benefits than short-term tax revenues. In emerging digital economies, affordability remains one of the most powerful drivers of digital transformation.
