Taxing mobile connectivity in Latin America - A review of mobile sector taxation and its impact on digital inclusion
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GSMA Intelligence is today publishing its latest research on mobile sector taxation and its impact on digital inclusion and economic & social development in Latin America.
The positive contribution of the mobile sector to the economy is well recognised. However, the tax treatment of the sector is not always aligned with best-practice principles of taxation, and may distort the continued development of the sector. Faced with considerable challenges in having to balance public sector budgets, some governments in Latin America apply additional, sector-specific taxes on consumers and mobile operators.
This report explains how taxes levied on mobile services exacerbate affordability issues, especially for those on lowest incomes. It also explores how, in a challenging investment environment, high taxes can restrict investment in next-generation networks and coverage. Finally, the report argues that a rebalancing of sector-specific taxes and regulatory fees can promote connectivity, economic growth, investment and fiscal stability.
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