 How strong is the case for the fiscal exceptionalism of the telecommunications sector?International Journal of Management and Network Economics, 2012, vol. 2, issue 4, 322-335 Abstract: Telecommunications are subject to exceptional fiscal treatment in respect of both taxes and subsidies. Services are subject to special taxes in many jurisdictions; and special subsidies are paid to finance investments, especially in new fibre networks. The paper analyses the validity in general of both of these forms of treatment. In many jurisdictions the ground for collecting special taxes seems to hinge, especially in developing countries, upon the relatively low costs of tax collection. However, special taxes may discourage diffusion and restrict growth. In relation to subsidies, the justification can run from equity or industrial policy goals to the avoidance of market failure. In both instances, the argument depends on the degree to which investment in telecommunications creates externalities which enhance growth. The paper concludes that no general case for either form of special treatment has been proven. Keywords: telecommunications industry; taxes; subsidies; effects on growth; exceptional fiscal treatment; taxation; new fibre networks; investment finance; developing countries; tax collection costs; telecommunications investment; special treatment. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmnec:v:2:y:2012:i:4:p:322-335 Access Statistics for this article More articles in International Journal of Management and Network Economics from Inderscience Enterprises Ltd |
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