Cabinet has approved the amendment of the Excise Duty Act 2015 that will see mobile Money tax transactions reduced from 1% to 0.5% effected on withdrawals alone. Cabinet has however maintained the Over the Top OTT tax promising to only revise the payment.
It is good news for mobile money users as government confirms a 0.5% tax to be effected on withdrawals alone.
Addressing the press at the government media centre, Minister of ICT and National Guidance Frank Tumwebaze revealed that a time frame has been attached to have the excise duty amended.
The law will see a reduction of the mobile money tax to 0.5% and collections made immediately in an effort to balance the budget for financial year 2018/2019.
Government expects to collect 118 billion shillings in taxes from the mobile money tax on withdrawals.
Cabinet has however maintained tax on social media or Over the Top Tax at 200/- per day of access but pledges to improve payment options with telecom companies.
Government is however concerned that while the funds are meant to facilitate the running of the budget, many Ugandans have instead opted to use VPNS affecting collections.
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