Rethinking mobile taxation to improve connectivity
Mobile is the main gateway to the internet for consumers in many parts of the world today, particularly in developing countries. Despite this, governments in many of these countries are increasingly imposing – in addition to general taxes – sector-specific taxes on consumers of mobile services and devices and on mobile operators. This poses a significant risk to the growth of the services among citizens, limiting the widely acknowledged social and economic benefits associated with mobile technology.
This latest report from GSMA Intelligence examines mobile sector taxation over time and its impact on connectivity. The report highlights the taxes applied to mobile services and how certain taxes can raise the affordability barrier and reduce the ability of citizens to take part in digital society. It also explores the impact of uncertain tax regimes on operators’ ability to continue investing in new networks.
The report shows how sector-specific taxes can create inefficiency, inequity and complexity, and hinder achievement of the UN Broadband Commission’s target for affordable broadband for all by 2025.