Internet and pay-TV taxes shock market

Internet and pay-TV taxes shock market

The telecommunications market has been stunned by the agreement between the government and the country’s creditors about taxing the Internet and pay-TV. Market professionals note that the agreement for a 5 percent tax on every Internet connection and a 10 percent levy on every pay-TV subscription will both damage growth and be impossible to implement.

The level of the taxation is expected to lead to a further slowdown in the expansion rate of information and communication technologies in Greece. The same is likely to happen as regards pay-TV penetration.

More importantly, the tax will lead to market distortions, as companies offering combined telecom services (double- or triple-play) will start imposing high charges for phone services and low charges for services on which the levies will be imposed, to reduce their tax bill.

Well-informed sources further state that the government has not even examined the application and consequences of those measures.

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.