Uganda: Government tries to block VPNs while Ugandans swear to dodge tax on social media



[ad_1]

By Franklin Draku

Kampala – The government has decided to block the virtual private networks (VPN) that several Ugandans have installed on their mobile gadgets in order to evade the government tax on social media [19659003] took effect yesterday, forcing some Ugandans to resort to VPN, a technology that creates a secure and encrypted connection over a less secure network, such as the Internet.

However, the executive director of the Uganda Communications Commission (UCC), Mr. Godfrey Mutabazi, said that they have all the software needed to block VPN services.

"We have a technology that will block VPN services so that no one bypbades taxes." He added, "We have all the systems needed to block virtual private networks already there and governments."

M Mutabazi also stated that in certain situations where some individuals would have bypbaded the system, they would be subject to the same taxes, with possible surcharges to access the Over The Top (OTT) services.

While many have successfully installed VPN, they had to incur additional costs because some VPNs are also among those taxed.

A similar message from the MTN mobile telecommunications company says: "VPNs are a common global method of accessing Internet services while by masking the nature of the Internet service used. This is because these VPNs can then be used to indirectly access OTT services that the government has included these sites as being subject to OTT tax. "

" Unfortunately, creating a VPN service is relatively easy and takes place outside of Uganda's borders. . For this reason, operators will block access to VPNs that the authorities claim to be used for OTT services, unless the consumer has paid its OTT tax, "adds the message

Payment by Money mobile

Telecommunication operators, the payment of tax on social media will only be made using mobile money platforms or electronic wallets on which access will be granted.

Taxes will also attract the 1% levy on mobile money. A total of Shs202 for OTT for a day If you subscribe for a week, you will pay a total of Shs1,414, instead of Shs1,400, while those who subscribe for the whole month will separate with Shs6,060

MTN says the payment of the OTT tax has been separated from the airtime because the airtime has its own set taxes and, therefore, pay using the Antenna mps would be a double taxation

"Airtime has its own set of taxes (VAT and excise) to avoid unnecessary double taxation, you" MTN's statement reads further.

Currently, Uganda has 13 million Internet users, of whom 33% access the facility through a mobile connection. The government expects to generate between 400 billion shillings and 1,400 shillings of annual social media tax

A joint message from Airtel, MTN and Africell indicates that the daily payment will be made until At midnight that day. This means that even if a customer subscribes at 11:50 pm, services will expire at midnight.

million. Mutabazi defended the decision, saying the government would follow the chosen billing format. We use the calendar day and we say that you can not use social media during the day and night and, therefore, you will be charged until midnight, regardless of the time you paid during the day or night. Telecom operators will meet UCC today to deploy the VPN blocking and iron out some issues on the implementation of the new tax.

Genesis

Parliament last month amended the Public Finance Act, slapping the tax on social media. The movement followed a directive from President Museveni to the Ministry of Finance to broaden the tax revenue base. The president said that social media platforms like WhatsApp, Facebook, Twitter, Skype and Viber were used to spread falsehoods and that for Ugandans to access sites for what he calls Lugambo, they should pay for them.

19659024] VPN technology has been developed to allow remote users and branch offices to securely access enterprise applications and other resources. To ensure security, data flows through secure tunnels and VPN users must use authentication methods, including pbadwords, tokens, and other unique identification methods to access to the data. Video streaming services such as Ugandan TV and Iflix are not currently considered OTT taxable services

– VPNs may be used for indirect access to OTT services. For this reason, operators block access to VPNs that authorities claim to be used for OTT services unless the consumer has paid his OTT tax.

– To use OTT services such as WhatApp, you must pay Shs200 per day. If you do not pay the tax, you will not be able to use the OTT services listed even if you have a valid dataset.

– You can pay your OTT tax by dialing * 150 * 3 # or * 165 * 2 # or via the MTN application. Payment will only be possible on mobile money.

– The OTT tax is Shs200 per day of access. You can however choose to pay for a day, seven days or 30 days of access.

– The OTT tax will expire at midnight every day.

– Airtime has its own set of taxes (VAT and excise)) and to avoid unnecessary double taxation, you are required to pay tax only by mobile money

– Billing of the tax OTT excise separately from the data batch allows the consumer to decide which days he wishes to access OTT services

– When you pay the fee, you can use OTT services until midnight. If you have a daily 24-hour data set that expires the next day, you must pay the tax for 2 days to be able to take advantage of OTT services on the day your package expires.

– You will be required to pay the OTT tax even when you have purchased a package to use the OTT services above. You can, however, use your package to access other non-OTT services without paying the OTT TAX

– To pay your OTT tax for your dongle / MiFi, you must go to the same location. mobile money * 165 #, * 150 * 3 # or MyMTN APP and select the option "pay for another", insert the modem number or MIFI / router and the OTT tax will come alive.

– The OTT tax is not related to the

-URA charged 1 percent excise duty on the mobile money transaction, so you actually pay a total of Shs202 a day.

– To reduce inconvenience to all network customers during the implementation phase, there will be no charge on Africell OTT at the time of launch.

– Access to OTT services from all telecommunications service providers requires you to pay your OTT tax for your devices or gadgets accessing OTT.

– Your employer is responsible for the use of telecommunications services in the place and will have to pay OTT tax for each of its links or disable OTT services at the workplace.

– You have the option to buy an OTT tax card from one day, seven days or 30 days. There is no self-renewal for the moment.

What the others say …

Dr. Fauz Kavuma, doctor. "It is double taxation at its best and should be illegal.I am still shocked by the way in which Parliament has pbaded this tax.For mobile money, it is unfair to tax the money twice after the salary you earn (PAYE) is already deducted 19659046] Ruth Kagimba, social worker

I have awakened to a million messages, especially from different groups to which I subscribe, but today (yesterday) there is a sports group that surprised me with only four messages.The problem is not the Shs200.But I think we were not sensitized enough, until we got it. now I have friends who ask me how the tax is paid.

Ian Arinaitwe, mobile money user

As a user of & nbsp; 39, mobile money, has affected because each transaction made is taxed at 1% .For example, customers who sent Shs30,000 of Will add Shs300 plus shipping and withdrawal charges. "

Moses Talibita, Jurist at the National Health Consumers Organization of Uganda

" These taxes fall into the category of what we call taxes on sin. I think these should have been put on cigarettes and alcohol because these pose health hazards. These restrictive taxes on mobile money and social media must restrict access to information. "

Compiled by Emmanuel Ainebyoona

[ad_2]
Source link