GSMA and AHCIET Studies Highlight How Lowering Taxation on Telecoms Could Benefit Latin American Economy

GSMA and AHCIET Studies Highlight How Lowering Taxation on Telecoms Could Benefit Latin American Economy PR Newswire LONDON, Dec. 10, 2012 - High Taxes Hinder Economic Growth and Take-up of 3G Mobile Broadband Services LONDON, Dec. 10, 2012 /PRNewswire/ -- Today the GSMA and AHCIET released findings from respective reports 'Mobile Telephony and Taxation in Latin America' and 'Taxation and Telecommunications in Latin America', both undertaken by Deloitte, showing that lowering taxation on telecoms would benefit the Latin American economy. The GSMA's study highlights that the mobile industry contributed an estimated $177 billion USD[1] to the economies of Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Panama, Peru and Uruguay, representing 3.5 per cent of the region's GDP. The study also indicated, however, that some countries in the region suffer from high mobile-specific taxes which threaten the ongoing development of the mobile industry and the take-up of innovative services. "Higher taxes on the mobile industry hinder the adoption of new services, such as 3G mobile broadband and M2M services, and mobile usage generally," said Tom Philips, Chief Government and Regulatory Affairs Officer, GSMA. "Mobile is an important contributor to economic success and we have clearly seen that when countries have lowered mobile-specific taxes, it encourages greater usage, boosting economic contribution, consumer benefits and government tax receipts.