Brazil Announces Plans To Tax Big Tech Firms

The Brazilian government plans to tax large technology companies to fund projects aimed at digital inclusion and improving the country’s telecommunications infrastructure. Proposed legislation is currently being drafted, with the aim of presenting a bill before the end of the first half of 2024.

The plans were announced by the Brazilian Communications Minister, Juscelino Filho, at the Mobile World Congress, taking place in Barcelona this week. “It is time for technology giants to contribute more effectively to expanding connectivity. It is a social duty of these companies,” the minister stated.

“With the joint efforts and participation of big tech, we have a unique opportunity to revolutionize digital inclusion globally and bring internet access to the poorest, to communities still without connection, and to reduce social inequalities,” he pointed out, adding that the proposal will be developed after dialogue with various stakeholders, including the tech companies.

Big tech is “responsible for the massive use of the country’s telecommunications infrastructure without providing the necessary compensation,” the minister argued, noting that companies need to engage in the topics as they will also benefit from the country’s network expansion.

Amazon, Meta, Google, and Microsoft were contacted for comment, and this article will be updated upon receiving any responses.

In Brazil, 36 million people do not have access to the internet, according to data published in 2023 by the Brazilian Internet Steering Committee. The Southeast region, where the states of São Paulo and Rio de Janeiro are located, accounts for 42% of the total number of people who are digitally excluded, while the Northeast region ranks second at 28%.

Of those who lack internet access, the majority are black and aged 60 and over, according to the data from the Internet Steering Committee. Brazilians with the most basic education level and belonging to the lowest socioeconomic layers of society are also among the most impacted groups by digital exclusion.