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SVG To Introduce Mobile Phone Tax

by Amanda Banks, Tax-News.com, London

21 December 2004


The government of Saint Vincent and the Grenadines is planning to place a tax on international and domestic telephone calls made from cellular phones, a local media report has revealed.

According to Caribbean Net News, a source from within the government has indicated that the 5% tax will go into effect next month as part of the measures in the 2005 budget.

The source disclosed that the new tax will become law through an amendment to the International Communication Surcharge Act (ICSA), and all providers of international cellular communication services will be expected to pay the charge.

However, the tax will not apply to internet service providers.

There are some 58,000 active cellular phone subscribers in Saint Vincent and the Grenadines, and the tax is expected to generate some $2 million in revenues per year.

A comprehensive report in our Intelligence Report series giving background tax and residence information on many of the key offshore jurisdictions is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report4.asp

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