Mobile taxation – Surcharges on international incoming traffic

Saturday 17 Sep 2011 | Digital Inclusion | Research & Reports | Sub-Saharan Africa | Taxation |

Mobile taxation – Surcharges on international incoming traffic image

A new type of tax, a surtax on international inbound call termination or SIIT, has emerged in popularity in Africa. This tax centrally fixes the prices that operators can charge when terminating international inbound calls, which distorts price competition and negatively impacts on business and consumers. This report found that where the SIIT has been imposed, the level of inbound international traffic has fallen and prices of outbound calls have increased due to the reciprocation of higher termination prices by operators in other African countries.

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