Digital inclusion and mobile sector taxation in India 2015

The mobile market in India is the second largest in the world, connecting over 480 million people, equivalent to 38% of the population. Mobile services deliver widespread social and economic benefits to the country and mobile will play a key role in the future as government initiatives such as Digital India are implemented. However, the sector is subject to high mobile specific taxes and fees, with $9.3 billion being paid to the government in 2014, approximately 31% of mobile sector revenues. This report estimates the impact of reforming taxation of the mobile sector, with a focus on regulatory fees, and makes recommendations for wider reform to the sector.