Digital inclusion and mobile sector taxation in Honduras 2016

The mobile sector in Honduras has grown rapidly and today it reached 5.4 million users, or 66% of the population. However, barriers remain to the affordability of mobile services especially for the bottom of the pyramid. By affecting the tax burden on consumers and operators, sector-specific taxes such as the mobile security tax and universal funds contributions increase prices and affect affordability. This report estimates the impact of reforming taxation of the mobile sector and makes recommendations for wider reform to the sector.