A review of mobile sector mobile taxation and its impact on digital inclusion

Mobile connectivity is a key facilitator of digital inclusion and economic and social development. The mobile industry in Latin America and the Caribbean contributed more than $260 billion to the regional economy in 2016. This represents 5% of the region’s total GDP and supports 1.7 million jobs. Although 300 million people – half the population – subscribe to mobile internet in the region, there is room for further growth: for comparison, 65% of the population in Europe and North America are connected to mobile internet.

Consumers and operators in Latin America are subject to a substantial tax burden. Taxes levied on mobile services exacerbate affordability issues, especially for those on lowest incomes. Rebalancing sector-specific taxes and regulatory fees can promote connectivity, economic growth, investment and fiscal stability.

The GSMA has commissioned Deloitte and EY to prepare a series of studies to analyse the tax situation in countries across the region and, working with GSMA Intelligence, has conducted an overview of taxation in the region.

The cases currently available in this series are: