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French Government May Tax Its Mobile Phone Operators

by Ulrika Lomas, Tax-News.com, Brussels

20 October 2003

French newspaper Le Figaro reported last week that the French government is considering imposing tax or other charges on the nation's mobile phone operators when it renews the licences for the existing networks.

According to the report, the tax could either take the form of a once-off charge for the renewal of an operator licence, a tax on mobile company's revenues or a combination of the two. The Finance Ministry however, has yet to confirm or deny the reports.

It is thought that the government wants the mobile operators to expand the amount of French territory that their networks cover, something that will require extra investment.

The decision will not be known until next year however, when the negotiations for the mobile phone licences are expected to be completed.

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