Willie Sutton Archives — LIRNEasia

The 80 percent and 160 percent increases in taxes on voice-SMS-VAS services and data, respectively, caused me to write an oped anchored on one instrument of public policy, use of fiscal means to discourage use of demerit goods. I wish to make clear that there is nothing wrong with subjecting telecom services to normal taxation such as VAT and NBT. Many years ago, that was the case. But over time various additional levies were layered on top, taking the overall tax burden to around 32%. Around 2009, the previous Government rationalised the mess, exempting telecom services from general taxation while imposing a single telecom levy.