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The Uganda Ministry of Finance revised the controversial mobile money taxes, adopting the levy reduction of 1% to 0.5%, adding that it will only be levied on withdrawals and not on the sending, receiving and depositing.
Parliament pbaded the Excise Tax (Amendment) Bill 2018 last month, which provided for a levy of 200 shillings ($ 0.05) per day for access to a range of online services. Some platforms affected by the tax include Facebook, Twitter, WhatsApp, Google Hangouts, YouTube, Skype, Yahoo Messenger.
Cabinet revises mobile money tax
Following a cabinet meeting held on Monday, Minister Frank Tumwebaze told reporters that the government had responded to public calls to make the "fair" tax.
Cabinet approved the amendment of the Excise Tax Act … reducing the tax payable on the tax "The Government approved the amendment of the Excise Tax Act … reducing the tax payable on the mobile money tax from 1% to 0.5% on withdrawals only, "said the minister.
I am very glad that
mofpedU& #Cabinet agreed to reduce the tax from 1% to 0.5% and to levy it only on withdrawals, which means that if I send MM & transact numerically eg to pay utility bills, sc Hool charges or use my e-wallet to pay for any other service without tax. #CashlessEconomy https://t.co/a5hB6xTAQZ– Frank K Tumwebaze, MP (FrankTumwebazek) July 17, 2018
New taxes criticized by Ugandans
Taxes, implemented by telecommunication companies since July 1, have been widely criticized and resisted by the young population of Uganda, human rights defenders and economic badysts.
Taxes were legally challenged and were at the center of the protests. Kyagulanyi, popularly known as Bobi Wine.
The country's president, Yoweri Museveni, has since issued several statements defending the lifting of a tax on social media, but also make concessions on the mobile money tax.
Museveni ordered that the refunds be made to customers whose deposits had been charged, and also confirmed that the levy should have been 0.5%.
The cabinet's proposals will be presented to parliament for approval. Museveni's party is approved by parliament and generally approves all government proposals
Government insists on taxing social media tax
Critics of new taxes are unlikely to be satisfied with concessions, considering that Government insists
Here are the proposed changes to the Excise Tax Act, supposedly erroneous.
Sigh! pic.twitter.com/EzlhioU2h0
– Mujuni Raymond (@qataharraymond) July 17, 2018
The Minister of Finance of the State, David Bahati rather explained that the cabinet had decided to make the payment of this tax by
"We want to have more options for you to pay quarterly or annually, in addition to daily, weekly and monthly subscriptions," he said.
Currently, Ugandans can pay the levy of $ 0.05 on a daily, weekly and monthly basis in order to access social media sites such as Facebook, Twitter, WhatsApp and others.
FrankTumwebazek: When I did not pay my OTT tax I can not access my WhatsApp– Uganda Media Center (@UgandaMediaCent) July 17, 2018
Bahati also said that the government has since registered up to 10 mi Llion users who have paid tax on social media, stating that there is no tax on all Internet services.
Uganda has about 23.6 million mobile phone subscribers, of whom 17 million use the Internet, according to the Uganda Communications government agency. Commission.
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