MOBILE MONEY TAX (0.5%) WILL ONLY BE CHARGED ON WITHDRAWALS, SOCIAL MEDIA TAX TO STAY
Cabinet has approved an amendment to the newly introduced tax on mobile money, from the 1% tax on all mobile money transactions, to a 0.5% tax to be charged only on withdrawals.
Briefing the press about this week's cabinet resolutions, the Minister for Information Technology and Communications Frank Tumwebaze said by taxing only withdrawals, government is encouraging cashless transactions.
According to the finance Minister for Planning David Bahati, the 0.5% amendment on withdrawals only, will raise 118 billion shillings this financial year.
The amendment follows a public back-lash, after the 1% percent levy came into effect on the 1st July 2018.
However Minister Frank Tumwebaze says cabinet has resolved to maintain the 200 shillings daily tax on Over the Top Internet Services, most commonly known as social media tax.
Justifying the move, Tumwebaze said government needs to generate revenue to facilitate expansion of internet services.
State Minister of Finance for Planning, David Bahati, said government is however reviewing the payment options for social media tax, in a bid to make payment of the tax more convenient.
The tax has sparked similar outrage among Ugandans, with many labeling the move a ploy to stifle freedom of expression.