In 2005, the GSM Association (GSMA) developed its first study on tax and the digital divide, seeking to understand more fully the tax rates affecting telecommunications in developing countries and the impact that cutting taxes may have on mobile handsets and new services. The study’s key findings showed that telecommunication taxes were disproportionately high in many developing countries and that even small cuts in taxes many attract significantly more mobile users. In this second report, the analysis is extended to include a larger set of countries – in particular adding transitional Eastern European countries. The report also investigates more fully the link between lower taxes and revenue opportunities for governments in the long term, showing that cutting taxes may lead to increased economic growth in the least developed countries.
In 2005, the GSM Association (GSMA) developed its first study on tax and the digital divide, seeking to understand more fully the tax rates affecting telecommunications in developing countries and the impact that cutting taxes may have on mobile handsets and new services. The study’s key findings showed that telecommunication taxes were disproportionately high in many developing countries and that even small cuts in taxes many attract significantly more mobile users. In this second report, the analysis is extended to include a larger set of countries – in particular adding transitional Eastern European countries. The report also investigates more fully the link between lower taxes and revenue opportunities for governments in the long term, showing that cutting taxes may lead to increased economic growth in the least developed countries.
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