Taxes represent nearly half of total cost of mobile ownership in Turkey, report finds

May 9, 2012

1 Min Read

ISTANBUL -- The GSMA today outlined findings from its Mobile Telephony and Taxation inTurkey report which was undertaken by Deloitte to examine the economic impact of mobile telephony and the impact of mobile-specific taxation in Turkey. The research highlights that mobile consumers in Turkey pay the highest taxation as a proportion of mobile service costs in the world. Taxes in 2011 represented 48.2 per cent of the Total Cost of Mobile Ownership (TCMO)(1) for the average Turkish consumer against a global average of just 18.2 per cent. As a result, mobile penetration in Turkey lags behind other European and neighbouring countries. An analysis of countries that had a lower penetration than Turkey in 2000 shows that penetration in all of these countries has outpaced Turkey by 2011.

"Taxation on mobile consumers in Turkey should be eased," said Gabriel Solomon, Head of Regulatory Policy, GSMA. "Lowering taxes will be good for consumers, good for the government and good for the industry. We call on the Turkish government to review their tax strategy with a view to adopting a more positive approach. In the current economic climate, it is paramount for governments to foster, not hinder, economic growth."

GSM Association (GSMA)

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