The Irish government is considering proposals to add a one euro cent tax on SMS, a move that would raise additional 146 million EUR per year.
Not surprisingly, the industry trade body, the Irish Cellular Industry Association doesn’t like the idea. They said: “There is no logical reason why an additional tax should be imposed on text messages as opposed to any other product like cups of tea or coffee. The reality is that consumers already pay 21.5% VAT on all phone calls and text messages.”
Moreover, the problem is noted on how the tax would be raised as most tariffs include bundles of text messages.
Figures from the Mobile World show that Ireland ended last September with just under 5.2 million active phone accounts, representing a population penetration level of 124%!