Dhaka, May 22 -- Exorbitant tax structures levied on the country's mobile telecom sector are functioning as a critical barrier to internet connectivity, digital inclusion, and overall economic performance, according to a new comprehensive report.

The research document titled "Bangladesh Can Increase Economic Growth by Lowering Barriers to Digital Connectivity", prepared by global advisory firm Frontier Economics Limited for digital operator VEON, outlines how rationalising these heavy fiscal constraints could act as a massive catalyst for macroeconomic acceleration and ultimate expansion of the government's tax base.

According to the report, Bangladesh maintains an exceptionally low general tax-to-GDP ratio of 7.6 percent, far below the...