Tax Alcohol and Cigarettes Instead of Mobile Money and Social Media

The Uganda People’s Congress (UPC) has advised government to transfer the taxes that are being slapped on mobile money and social media on alcohol consumption and cigarettes that are a greater threat to the youth.

UPC spokesperson Michael Osinde was addressing the party’s weekly media briefing held on Wednesday at the party head quarter located at Uganda House, Kampala.

Following the mixed reactions from the public about mobile money and social media tax, UPC party has urged government to transfer the tax to alcohol and cigarettes to reduce on its high consumption by the youths, since it is a threat to their health.

Michael Osinde said, ‘’The informal alcohol industry in Uganda is targeting young people through the strategic packaging of alcohol tot packs or sachets in lowest pocketable quantities and cheap pricing of about 200 shillings each.’’

According to the UPC, this strategic distribution makes alcohol seemingly very cheap but destructive to the life and future of the youths.

Instead, Osinde argued, ‘’Government should come up with policies that which will help vulnerable youth move away from alcohol and drug abuse.’’

On July 17th 2018 during the media briefing at 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.

However Cabinet 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.