Just a few days before the 3G tender process goes live in Turkey, the Turkish government has bowed to operator demands to reduce and equalise the level of value added sales tax on mobile and fixed broadband services.
The Ministry of Finance has announced that the Special Communication Tax on mobile internet will be decreased from 25% to 5% and on fixed internet from 15% to 5%.
Mobile operators, led by Turkcell, argued that the tax was unduly high and was hampering take up of services. The government has been persuaded that by reducing the tax level it may increase overall take by fostering greater growth, as well as cutting tax avoidance.
A Turkcell statement said, " We welcome the equalization of mobile and fixed internet taxation. We evaluate
this decision of our government as a very positive development for both consumers and the telecommunication industry."