Digital inclusion and mobile sector taxation in Colombia 2016
Mobile services today connect over 33 million people in Colombia, positioning the country as the fourth largest mobile market in Latin America. By contributing US$5.7 billion to the country’s economy, almost two per cent of GDP, mobile plays a major role in the country’s development. However, a number of barriers remain to connect the 16.4 million Colombians that still lack access to mobile services. Sector-specific taxes and fees, such as Consumption Tax on voice usage and FONTIC contributions, increase prices and affect affordability by affecting the tax burden on consumers and operators. This report identifies a number of priorities for reforming mobile sector taxation to achieve the ambitious goals of the national “Vive Digital” strategy.