With a rate of 56.3% taxes on home and mobile telephone calls, Turkey stands out as the world’s most expensive country in the communication sector. This rate is even twice as much as Uganda’s phone tax, which imposes the second highest tax rate in the world.

Omer Sabanci, President of the Turkish Industrialists’ and Businessmen’s Association (TUSIAD), said “Tax rates should be brought down to the EU mean average.” According to Sabanci, the Turkish communication market has a huge potential. However, in terms of per capita computer ownership figures, information technology spending, and internet usage, Turkey has the lowest figures compared to European Union members and developing countries. The association’s report stresses “The Turkish market is mainly software-focused rather than hardware.”

Turk Telekom General Manager Paul Doany also complained about high taxes. Doany said “Turk Telekom are focusing on the factors that increase service quality and price competition in favor of consumers, such exuberant taxes finally misdirect money. Tax rates on GSM services have risen to 55 percent, and this is a serious problem.”

But it all comes down to an ineffective income tax system as we have recently reported. The Government needs to raise taxes and adding them to phone bills, petrol and other indirect taxes is the easiest way.