Business Wire

GSMA Report Highlights Impact of Taxation on Mobile Connectivity in Sub-Saharan Africa

Del

The GSMA today announced findings from its latest report, ‘Taxing Mobile Connectivity in Sub-Saharan Africa: 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 affordability and investment in Sub-Saharan Africa. It 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.

“Mobile connectivity is a critical enabler of economic and social development but in many countries, particularly developing countries, the mobile sector is over-taxed relative to its economic footprint,” said Mats Granryd, Director General, GSMA. “The excessive taxation applied to the mobile sector ignores its positive economic contributions and leads to negative affordability and investment impact. In the current economic climate, it is paramount for governments to foster, not hinder, growth.”

Key Report Findings

Findings from the research demonstrate the distortionary impacts of sector-specific taxation, highlighting the potential economic benefits of rebalancing sector-specific taxes and regulatory fees.

  • In Sub-Saharan Africa, more than 420 million people (43 per cent of the population) subscribed to a mobile service at the end of 2016; but the region faces a significant digital divide with only 26 per cent of the population subscribed to a mobile internet service at the end of 2016;
  • In 2015, the mobile sector paid, on average, 35 per cent of its revenues in the form of taxes, regulatory fees and other charges in the 12 Sub-Saharan African countries for which this data is available. Around 26 per cent of the taxes and fees paid by the mobile industry related to sector-specific taxation rather than broad-based taxation;
  • Mobile network operators’ (MNOs) contribution to government tax revenues outweighs their size in the economy. For example, in the DRC, sector revenues accounted for 3 per cent of GDP in 2015 while mobile tax payments represented more than 17 per cent of total government tax revenues;
  • For 27 countries in the region where data is available, the total cost of mobile ownership (TCMO) for purchasing a handset and 500 MB of data per month represents, on average, 10 per cent of monthly income, well above the 5 per cent threshold recommended by the UN Broadband Commission;
  • MNOs in the region have invested $37 billion in their networks over the past five years. However, a combination of frequent tax changes and the high number of taxes levied on MNOs increases the complexity and operational burden; and
  • Countries that have a higher level of taxes and fees as a proportion of sector revenues tend to have relatively low levels of readiness for mobile internet connectivity.

Recommendations

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 Sub-Saharan Africa 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 regulatory fees;
  • Reduce complexity and uncertainty of taxes and fees on the mobile sector;
  • Remove consumer taxes that target access to mobile services;
  • Support effective pricing of spectrum to facilitate better quality and more affordable services;
  • Reduce or remove import duties;
  • Implement supportive taxation for emerging services such as mobile money;
  • Remove taxes on international incoming calls; and
  • Avoid excessive regulatory fees and taxes on revenues.

The report can be found at: www.gsma.com/mobilefordevelopment/programme/connected-society/taxing-mobile-connectivity-sub-saharan-africa-review-mobile-sector-taxation-impact-digital-inclusion.

-ENDS-

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.

Contact information

Media Contacts:
David Ntwampe Maila
+ 27 72 015 4702
dmaila@webershandwick.com
or
Clare Fenny
+44 20 7067 0749
CFenny@webershandwick.com
or
GSMA Press Office
pressoffice@gsma.com

Om Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

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

Düsseldorf Airport to Deploy Next Generation ECAC Standard 3 EDS Screening Technology from Smiths Detection24.1.2018 09:00Pressemelding

Smiths Detection is supplying next generation hold baggage scanners to support the upgrade to ECAC Standard 3 explosives detection systems (EDS) at Düsseldorf Airport. Awarded by the Procurement Office of the German Ministry of Interior, the contract includes 14 advanced HI-SCAN 10080 XCT scanners, which deliver exceptional levels of security; and can be further updated as necessary in the future to detect new explosive threats. There is also an associated eight year service agreement. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180124005070/en/ Düsseldorf Airport to deploy next generation ECAC Standard 3 EDS screening technology from Smiths Detection (Photo: Business Wire) “European airports are currently very focused on upgrading to ECAC Standard 3 approved EDS to meet the new regulations,” commented Tony Tielen VP EMEA, Smiths Detection. “This does, of course, require a financial investment which must be clearly weighed

GleSYS Tap Into Telia Carrier Backbone to Increase Capacity and Support Growth Plans24.1.2018 09:00Pressemelding

Telia Carrier announced today that it is working with one of Sweden’s fastest growing hosting companies, GleSYS , to provide improved capacity and support future growth plans. GleSYS will be connecting to the Telia Carrier global backbone, one of the largest in the world, and the first to be 100G enabled in Europe and North America. GleSYS provides hosting and data centre services to over 4,000 customers in 70 countries. With two fully redundant datacentres in Sweden and a network of cloud hosting locations, GleSYS supports a range of industries, such as eCommerce, where performance, responsiveness and reliability on a global scale have a direct impact on revenues and are therefore critical. Telia Carrier will be providing 100G IP Transport and wavelength network transport services to double available capacity on GleSYS’ current infrastructure, which provides cloud hosting, dedicated servers and colocation in multiple sites across Europe. Eric Lindsjö, Head of Networks at GleSYS, said;

GSMA Announces Nominees for 2018 GLOMO Awards24.1.2018 09:00Pressemelding

The GSMA today announced the nominees for the Global Mobile Awards 2018 (GLOMO Awards). Winners of the awards will be presented throughout Mobile World Congress, which takes place 26 February – 1 March in Barcelona. The full list of nominees can be found at http://gsma.at/glomoshortlist. "The GLOMOs offer organisations and individuals from across the world an opportunity to showcase how mobile technology continues to inspire new levels of ingenuity, innovation and achievement,” said Michael O’Hara, Chief Marketing Officer, GSMA. “As always, the calibre of entries is extremely high, so to be shortlisted for the GLOMOs today is quite an achievement in itself. We wish the very best of luck to all nominees and look forward to unveiling the winners at Mobile World Congress next month.” The GLOMO Awards feature an afternoon ceremony at 15:30 CET on Tuesday, 27 February in Auditorium 5, Hall 4, and will include the presentation of winners in three categories including “Social Good”, “Governme

Integral Expands Cryptocurrency Market Data Services to Include 14 Cryptocurrencies and 16 Exchanges23.1.2018 22:00Pressemelding

Integral (www.integral.com), the financial technology partner trusted by leading banks, brokers, and investment managers to design, deliver and grow their FX businesses, announced today that it has expanded its market data offering for cryptocurrencies to include 14 major cryptocurrencies connecting to all major exchange sources across the U.S., Europe and Asia including Japan and Hong Kong. “An accurate, stable, and reliable reference price is a requirement for any market maker,” said Harpal Sandhu, CEO of Integral. “The Cryptocurrency Market Data Service connects to the most price sources and applies the most advanced price discovery algorithm available.” Integral has years of experience as a technology leader and innovator in foreign exchange and is now applying this ingenuity to the cryptocurrency market. The Market Data Service uses algorithms developed with Stanford University for Integral FX Benchmark to provide the most precise reference prices for cryptocurrencies. “Integral’s

Kimbal Riley to Become Vista Group CEO23.1.2018 21:57Pressemelding

Vista Group International (NZX & ASX: VGL) has today announced that Kimbal Riley will take over as Group CEO from Murray Holdaway. Mr Holdaway will take up the position of Chief Product Officer (CPO) for Vista Group, and will continue in his role as an Executive Director on the Vista Group board. This has taken place as part of a succession planning process and will deliver a seamless transition within the business. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180123006545/en/ Kimbal Riley becomes CEO of Vista Group International (Photo: Business Wire) Mr Riley has had an extensive career in senior executive roles in the IT and Services industries in New Zealand and overseas. He joined Vista Group four years ago, with the past two years as CEO of Vista Entertainment Solutions (VES), which is responsible for the largest proportion of the Group’s revenue. He has been focused on building scale in the business and under his lea

IFF Breaks Ground on Flavors/Fragrances Site in Sri City, India23.1.2018 17:00Pressemelding

Regulatory News: International Flavors & Fragrances Inc. (NYSE: IFF) (Euronext Paris: IFF), a leading innovator of sensory experiences that move the world, has broken ground on a new flavors and fragrances plant located in Sri City, in the State of Andhra Pradesh in India. Part of a larger investment into the Greater Asia region, the plant is expected to be commercialized in December 2019. The new facility, which will be the largest flavor and fragrance manufacturing facility in India and the largest IFF site in Greater Asia, occupies a 32-acre/130,000m2 plot and will serve IFF flavors and fragrances customers across India and the region. “In this economically vibrant country, it is critical that we invest to provide our customers with winning tastes and scents,” said IFF Chairman and CEO Andreas Fibig. “This new facility is fitted with capabilities tailored for our customers’ needs. Coupled with our excellent consumer insights teams and their deep understanding of the local markets, w

I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.

Besøk vårt presserom