After surveying the impacts of spectrum mortgage as proposed in India, we cast our eyes on Brazil for another policy matter: tax.
Essentially, the Communications Minister of Brazil is
concerned with the following:
“Excessive” taxes that amount to “38% of mobile
phone bills”
“Distortion” as a result of higher taxes on prepaid
services (52% of phone bills) than postpaid (21%)
There are other policy considerations, including the potential implications onthe goal of equity,digital divide andwelfare cost. Theseunexamined issues are explored in our recently published ABI Insight. We also looked at thefiscal prospect from another perspectivein the context of falling prepaid subscription ratio, as well asthe dynamic between a new tax regime and other measures to boost smartphone penetration.