GSMA Report Highlights Impact of Taxation on Mobile Connectivity in Latin America
The GSMA today announced findings from its latest report, ‘Taxing Mobile Connectivity in Latin America: A review of mobile sector taxation and its impact on digital inclusion’. The report provides an overview of the tax and fee regime applied to mobile services and its impact on the affordability of mobile and investment in Latin America. While recognising the need of governments to balance the competing objectives of revenue maximisation and growth, the study explores how mobile sector taxation can raise the affordability barrier in the region, undermining digital inclusion efforts. It also discusses how uncertain and complex taxation regimes affect operators’ ability to invest in infrastructure rollout.
This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20171101005080/en/
GSMA Report Highlights Impact of Taxation on Mobile Connectivity in Latin America (Photo: Business Wire)
“Mobile connectivity is a significant enabler of digital inclusion and economic and social development, however, in many countries the mobile sector is over-taxed, which may hinder the continued development of the sector,” said Sebastián Cabello, Head of Latin America, GSMA. “In Latin America, the total cost of mobile ownership is above the five per cent of income threshold recommended by the UN Broadband Commission. Some governments in the region apply additional sector-specific taxes on consumers and mobile operators, leading to negative affordability and investment impacts. In the current economic climate, it is paramount for governments to foster, not hinder, growth.”
Key Report Findings
The report showed that the mobile industry in Latin America and the Caribbean contributed more than $260 billion to the regional economy in 2016 or five per cent of the region’s GDP, supporting 1.7 million jobs. Findings from the research demonstrate the distortionary impact of sector-specific taxation, highlighting the potential economic benefits of rebalancing sector-specific taxes and regulatory fees:
- In Latin America, only half of the population subscribes to the mobile internet, in comparison to more than 65 per cent of the population in Europe and the US;
- In 2016, the mobile sector in Latin America paid, on average, 25 per cent of its revenues in the form of taxes and regulatory fees;
- Consumers face sector-specific taxation in addition to general VAT in 11 out of the 20 countries studied;
- Markets featuring higher levels of sector-specific taxes as a proportion of market revenue tend to have lower affordability levels;
- For all countries in the region where data is available, the total cost of mobile ownership for purchasing a handset and 1GB of data per month is above the five per cent of income threshold recommended by the UN Broadband Commission; and
- Mobile network operators have invested considerably in the region by launching more than 108 4G networks between 2011-2016, despite a challenging reduction to average revenue of 15 per cent per connection during the same period.
Rebalancing sector-specific taxes and regulatory fees can promote connectivity, economic growth, investment and fiscal stability. A number of principles for reforming sector-specific taxation and fees should be considered by governments in Latin America in order to align mobile taxation with that applied to other sectors and with the best practices recommended by international organisations such as the World Bank and the IMF:
- Reduce sector-specific taxes and fees to help increase demand for mobile services and incentivise investment, which would lead to an overall growth in government tax revenues over the medium term;
- Avoid excessive regulatory fees and taxes on revenues, and reduce Universal Service Fund (USF) contributions where the existing funds are underutilised;
- Reduce complexity and uncertainty of taxes and fees on the mobile sector;
- Reduce or remove import duties, for example, on network equipment;
- Remove consumer taxes that target access to mobile services, which would help ease the burden on affordability for the lowest earners in the region;
- Support effective pricing of spectrum to facilitate better quality and more affordable services;
- Avoid excessive spectrum auction prices being used as revenue raising mechanism for the government over and above mobile operators’ fair tax contributions;
- Remove taxes on international incoming calls; and
- Implement supportive taxation for emerging services such as the Internet of Things.
The report can be found at: https://www.gsmaintelligence.com/research/?file=61a38952cab354d09537f6675ed9772d&download (English)
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with more than 300 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai, Mobile World Congress Americas and the Mobile 360 Series of conferences.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.
Om Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
Manchester United and True Religion Launch Denim Range19.10.2018 17:37 | Pressemelding
Manchester United (NYSE:MANU) and luxury denim brand True Religion have collaborated to launch a range of premium club branded denim wear. A first for the club, the new global partnership with the iconic American denim brand will see a range of men’s & women’s co-branded styles go on sale beginning 26th October in the club’s Megastore as well as online via United Direct and truereligion.com & eu.truereligion.com. The exclusive collection features jeans, shirts and jackets, including a highly desirable limited edition denim jacket embroidered with the club’s crest. Fans will have the opportunity to win a selection of clothing from the new range by visiting www.manutd.com/truereligion. Manchester United’s Group Managing Director, Richard Arnold, comments: “True Religion is a well-known, established name in fashion, creating unique designs without compromising on quality. The range we have collaborated on includes the same attention to detail and craftsmanship that has made True Religion
Arch Insurance Announces Strategic Leadership Changes19.10.2018 13:10 | Pressemelding
Arch Insurance today announced that Matt Shulman will assume the newly created role of CEO, Arch Insurance North America, effective January 1, 2019. In this role, he will lead Arch Insurance’s operations in the United States and Canada. He will report to Nicolas Papadopoulo, Chairman and CEO of Arch Worldwide Insurance Group. Mr. Shulman, who has more than 20 years of experience in the insurance industry, has been with Arch Insurance since 2009 and has served as the President and CEO of Arch Insurance Europe since 2016. “Matt brings significant U.S. and international experience to this role. Under his leadership, together with our senior team, Arch Insurance will continue to enhance our value proposition to our customers through a robust, diversified product portfolio, creative solutions and excellent service,” Mr. Papadopoulo said. Arch Insurance has also created a new organizational structure with three Chief Underwriting Officers (CUO) dedicated to specific lines of business. These
Takeda to Present Results from Phase 3 ALTA-1L Trial Highlighting Intracranial Efficacy of ALUNBRIG® (brigatinib) Versus Crizotinib in First-Line Advanced ALK+ Non-Small Cell Lung Cancer19.10.2018 12:00 | Pressemelding
Takeda Pharmaceutical Company Limited (TSE: 4502) today announced that intracranial efficacy data from the Phase 3 ALTA-1L (ALK in Lung Cancer Trial of BrigAtinib in 1 st Line) trial showed improved intracranial progression-free survival (PFS) and intracranial objective response rate (ORR) with ALUNBRIG (brigatinib) compared to crizotinib among anaplastic lymphoma kinase-positive (ALK+) non-small cell lung cancer (NSCLC) patients. Data for these secondary endpoints will be presented in a poster discussion at the European Society for Medical Oncology (ESMO) 2018 Congress on Friday, October 19 at 2:00 p.m. CET in Munich, Germany. These results further support ALUNBRIG as a potential treatment for adults with ALK+ locally advanced or metastatic NSCLC who had not received a prior ALK inhibitor. ALUNBRIG is currently not approved as first-line therapy for advanced ALK+ NSCLC. “ALK+ NSCLC often spreads to the brain, so having options that can clearly demonstrate efficacy both in the brain an
Vertex Receives European CHMP Positive Opinion for KALYDECO® (ivacaftor) to Treat Patients With Cystic Fibrosis Aged 12 to <24 months With Certain Mutations in the CFTR Gene19.10.2018 11:54 | Pressemelding
Vertex Pharmaceuticals (Europe) Limited today announces that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion for KALYDECO® (ivacaftor) to include the treatment of people with cystic fibrosis (CF) aged 12 to <24 months who have at least one of the following nine mutations in their cystic fibrosis transmembrane conductance regulator (CFTR) gene: G551D, G1244E, G1349D, G178R, G551S, S1251N, S1255P, S549N or S549R. If the European Commission issues a favorable adoption of the EMA CHMP opinion for the extension of indication, ivacaftor will be the first and only medicine approved in Europe to treat the underlying cause of CF in patients aged 12 to <24 months, who have specific mutations in the CFTR gene. “Cystic fibrosis is a chronic, progressive disease that is present at birth, with symptoms often occurring in infancy, so early treatment is crucial to deliver the best possible outcomes for patients,” said Reshma Kewalr
Schlumberger Announces Third-Quarter 2018 Results19.10.2018 11:00 | Pressemelding
Schlumberger Limited (NYSE: SLB) today reported results for the third quarter of 2018. (Stated in millions, except per share amounts) Three Months Ended Change Sept. 30, 2018 Jun. 30, 2018 Sept. 30, 2017 Sequential Year-on-year Revenue $8,504 $8,303 $7,905 2% 8% Pretax operating income $1,152 $1,094 $1,059 5% 9% Pretax operating margin 13.5% 13.2% 13.4% 36 bps 15 bps Net income - GAAP basis $644 $430 $545 50% 18% Net income, excluding charges & credits* $644 $594 $581 8% 11% Diluted EPS - GAAP basis $0.46 $0.31 $0.39 48% 18% Diluted EPS, excluding charges & credits* $0.46 $0.43 $0.42 7% 10% North America revenue $3,189 $3,139 $2,602 2% 23% International revenue $5,215 $5,065 $5,147 3% 1% North America revenue, excluding Cameron $2,572 $2,546 $2,086 1% 23% International revenue, excluding Cameron $4,559 $4,387 $4,430 4% 3% *These are non-GAAP financial measures. See section below entitled "Charges & Credits" for details. Schlumberger Chairman and CEO Paal Kibsgaard commented, “Our third
Tradeshift Announces Q3 2018 Results19.10.2018 11:00 | Pressemelding
Tradeshift, the leader in supply chain payments and marketplaces, today announced results from the third quarter of 2018, marking the tenth quarter in a row of successive growth and beating targets. Tradeshift’s third quarter growth stats announced today include: YoY revenue grew 400 percent (trailing 12 months) YoY new bookings grew 284 percent YoY gross merchandise volume (GMV) grew 262 percent New total contract value grew by $47M in Q3 Tradeshift’s customer roster continued strong growth this quarter adding 27 new customers, including Hertz, Shiseido, ECU, and Fortune 500 leaders in retail apparel, agriculture, engineering and construction, hospitality, travel and food delivery. Tradeshift also expanded its app ecosystem by adding a key partnership with Coface, a global credit insurer. Coface has announced a new app solution on the Tradeshift platform offering risk and business information services to help businesses make decisions by ensuring greater financial transparency between