Report Advocates Tax Relief in Telecommunications Sector

According to a report released by the Global System for Mobile communications Association (GSMA), the key to spurring broadband adoption in previously under-covered areas is targeted tax relief. According to the group's summary of the study, "The study indicates how a reduction in special taxes applied to the telecommunications sectors in countries with different taxation approaches like Brazil, Mexico, Bangladesh and South Africa will translate into higher Mobile Broadband service adoption and more wealth creation reflected in additional GDP growth." The study's methodology analyzed the relationship between mobile broadband adoption and tax rates in the four countries outlined above. Despite disparities in other areas, the study notes that every dollar reduced in taxes across Brazil, Mexico, Bangladesh and South Africa will generate additional GDP ranging between US$1.4 to US$12.6 through enhanced broadband uptake.