Over the past decade, mobile connectivity in Eurasia has expanded significantly, driven by substantial investments to bridge the digital divide. Despite the mobile sector’s strong contribution to economic growth, fiscal revenues, and job creation, there remains untapped potential. In 2024, 28% of the population in Eurasia had mobile broadband coverage but did not use mobile internet. Closing this usage gap could boost socio-economic growth, increase fiscal revenues, and create jobs, further enhancing the impact of mobile internet services.
A conducive taxation environment can play a vital role in addressing the usage gap by fostering investment and reducing barriers to mobile connectivity. In some countries in the region, taxation levels are relatively high, primarily driven by sector-specific taxes and fees imposed on mobile operators and consumers. Additionally, in certain countries, the mobile sector faces discriminatory tax treatment, such as higher-than-standard corporate income tax rates, increasing financial pressures on operators. These taxation policies can hinder both investment in network expansion and the affordability of mobile services, limiting consumer adoption and slowing the deployment of advanced technologies like 4G and 5G.
This report reviews the tax regimes applied to mobile consumers and operators in nine Eurasian countries. It then offers recommendations to balance taxation to encourage investment in the mobile sector that drives digitalisation and unlocks socio-economic benefits across Eurasian countries.
