Mobile operators facing extra 12% state tax

5 Aug 2014

The government of Ecuador is aiming to impose a new 12% tax on the profits of mobile operators Movistar, Claro and CNT in order to reinvest the money in social telecommunications projects including rural telecentres, reports TeleSemana. The initiative is part of the proposed Amendment to the Special Telecommunications Act and is based on Article 408 of the Constitution of the Republic, which places tighter state controls over the country’s radio spectrum, while the reform will be discussed in the coming weeks in parliament. President Rafael Correa said in a statement: ‘The telecommunications sector, as well as mining and oil are considered strategic sectors; therefore the profits generated by these sectors should be reinvested for the benefit of the Ecuadorian society.’



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