Discriminatory taxes on telecommunications – ICC position paper

Despite the current economic crisis and the urgent need to trigger private investment in the ICT sector, a number of countries continue to apply higher taxes to telecommunications than other types of goods and services.

In this context, we’ve just issued a new discussion paper calling on countries to remove discriminatory taxation which deters the adoption and use of broadband, mobile and other advanced ICT sector tools. There’s already much evidence showing the telecoms infrastructure acts as major drivers of development and are important to encouraging growth in the information-based economies of the 21st century. For example, a 2009 World Bank study of 120 countries revealed that each 10% increase in broadband penetration increased national economic growth by 1.3%.

The new ICC paper includes country examples – such as India, Mexico and Slovakia – where the discriminatory usage of taxes on telecommunications is harming the long-term development of the ICT sector. These examples represent opportunities for national governments to work with business to revisit their tax policies with a view to increasing broadband penetration and competitiveness.

Please get in touch for more information on this work.