Finance Minister Says Mobile Money Tax Not Applicable on Deposits
Government has clarified on the 1% tax levied on mobile money transactions saying that deposits on individual accounts will be tax-free.
This follows the enactment of the new taxes on social media and a 1% levy on mobile money that has left many disgruntled with cabinet decisions.
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State minister of finance for planning David Bahati today attempted to reassure Ugandans that the 1% mobile money tax does not apply to those intending to digitize cash inform of mobile money.
While relying cabinet decisions at the weekly presser, the minister says the 1% tax was only intended for transactions on sending, receiving, withdraws and payments
Bahati said, “People who are using mobile money transactions to deposit won’t be charged. The 1% does not apply to them.”
The 1% mobile money tax has created debate in the public with many considering it as a barrier for those whose livelihoods depend on mobile money business transactions.
The minister says Ugandans should be more compliant if Uganda is to achieve its 2020 agenda of steady progress.
Bahati explained that, “101 trillion of the GDP, 62 trillion is transacted through mobile money. So if mobile money is taxed, the revenue generated will help to develop the country.”
Some of the public challenges noted concerning the new taxes have however not landed on deaf ears.
The minister says government continues to engage with UCC and telecom companies in order to make it easier for citizens to pay the new taxes. Bahati said they had asked innovators to develop new platforms to make this easier.
