23 August 2007

Telecoms, taxes and growth in Uganda

I found this item interesting. Many studies of telecoms adoption, penetration and growth focus on industrialized countries, so it is nice to see a thorough analysis of telecoms in a developing country, such as Uganda. Also, this study clearly shows that people respond to prices and taxes in their consumption and use. In many cases, high taxes on telecoms are justified because they are thought to be either "luxuries" or business-oriented, which are thought to be more able to afford higher taxes. This report would seem to suggest that there are unintended consequences of that view.

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