“Mobile connectivity is a critical enabler of economic and social development but in many countries, particularly developing countries, the mobile sector is over-taxed relative to its economic footprint,” said Mats Granryd, Director General, GSMA. “The excessive taxation applied to the mobile sector ignores its positive economic contributions and leads to negative affordability and investment impact. In the current economic climate, it is paramount for governments to foster, not hinder, growth.”
Key Report Findings
Findings from the research demonstrate the distortionary impacts of sector-specific taxation, highlighting the potential economic benefits of rebalancing sector-specific taxes and regulatory fees.
Rebalancing sector-specific taxes and regulatory fees can promote connectivity, economic growth, investment and fiscal stability. A number of principles for reforming sector-specific taxation and fees should be considered by governments in Sub-Saharan Africa in order to align mobile taxation with that applied to other sectors and with the best practices recommended by international organisations such as the World Bank and the IMF:
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with more than 300 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai, Mobile World Congress Americas and the Mobile 360 Series of conferences.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.