The GSMA has released the results of a study investigating the economic impact of mobile phones, and taxation relative to mobile phone ownership in Turkey.
Taxes on the use of mobile phones and service providers in Turkey is currently the highest in the world. In 2011, Turkish mobile operators paid 48.2 percent of the total cost of owning a phone in taxes alone, while the global average remained at just 18.2 percent.
Turkey currently lags behind neighboring countries in its rate of mobile phone usage.
"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," said Gabriel Solomon, Head of Regulatory Policy at the GSMA, who believes lowering the amount of taxes applied to mobile telephony will be a positive change for consumers, the government and the industry.
The data collected in the GSMA study seems to support Solomon's beliefs. Bringing the percentage of tax in the total cost of mobile ownership down to 38 percent would mean more revenue would be generated for the government by 2015. The economic importance of mobile expansion was also highlighted. Just last year, the mobile industry put 28.8 TRY (Turkish lira) back into the Turkey's economy, and employed around 150,000 people.
Taxes currently levied against owners of mobile devices include:
- A 25 percent “Special Consumption Tax,” which applies to every handset imported. In addition to the price of the handset and the Special Consumption Tax, another six percent tax goes to the Turkish Radio Television Foundation.
- An “Initial Subscription Charge,” applied to the purchase of a new SIM card, and adjusted each year for inflation.
- A “Wireless License Fee,” paid each time a new connection is purchased. Basically a registration fee, it applies to connections for use with voice and the broadband internet alike. This fee is also subject to inflation related increases.
- A “Wireless Usage Fee” to be paid annually, serving as a rental fee for any active subscriptions. Mobile Network Operators (MNO) are also forced to pay a mobile specific license fee, which comprises 15 percent of their turnover, and a "Telecommunications Regulation Authority Share" which comes out to 0.35 percent of their annual sales.
The study concluded that Turkey's taxations and licensing regulations are ultimately making things more difficult for everybody involved. Mobile operators are having a tougher time providing adequately for their customers, mobile penetration in Turkey is not what it could be, and therefore citizens are not afforded easy access to mobile communication and the internet.
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