If YES how If NO Why Not Corporate Tax for MNOs is not what is under contention Rather should the Service MMS be excluded from a financial Services tax where it exist The principles of Fairness and equity must hold ID: 1030037
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1. TaxationGroup A
2. Should MMS be Taxed? If YES, how? If NO, Why Not?Corporate Tax for MNOs is not what is under contention Rather, should the Service (MMS) be excluded from a financial Services tax where it exist?The principles of Fairness and equity must holdHence whatever is subject to tax must be taxed without discrimination
3. But NO! Not for a WhileHowever, if financial inclusion is a development objective worth pursuing Then governments should be willing to pay the price The cost includes forgoing any taxes that would constrain the growth of Financial Inclusion
4. Not UntilMMS Takes off/gains root and experience is builtFinancial inclusion targets are metThen MMS become less elastic And ripe for taxation
5. If not for a while then when?Deciding the best time to tax should be based on:Data and analysis of the tax elasticities and commercial viability of the sectorWRT Commercial Viability – tax holidays can also be usedThe achievement of the set financial inclusion targetsThere will need to be consistency across countries in the sub-region
6. How the tax Incidence be Reduced for the Poor?Transactions could be capped at a certain amount beyond which taxes applyTransactions could also be categorised such that those more likely to be undertaken by the poor are excluded from taxation