MTN, Airtel to maintain internet prices despite new tax

Telecom giants MTN Uganda and Airtel Uganda have announced they will not increase their pre-paid data prices despite the new 12% tax on internet.

Following the scrapping of the shs200 per day Over The Top (OTT) tax starting yesterday, July,1, 2021, government in turn imposed a 12percent excise duty on internet.

This means every data package an internet user buys, they are supposed to pay a 12 percent tax .

However, in a statement released on Thursday, Airtel Uganda Chief Commercial Officer, Amit Kapur said the company will not increase the price of their data.

“Our subscribers will not be required to pay OTT in order to access social media websites and apps. We shall institutionalize the 12% excise tax as mandated by the government of Uganda however, Airtel Uganda will absorb the excise duty for all pre-paid packs, thus maintaining our pre-paid data prices till further notice” Kapur said.

“This will allow Airtel Uganda customers to enjoy and connect with the world seamlessly using our affordable and reliable 4G Smartphone network with no limitation.”

With the onset of the pandemic and its effects like the lockdown, internet usage shot up as many people work from home to deliver on their daily tasks whereas others use internet to get customers but also to deliver services but also for study and entertainment.

In a separate statement, MTN Uganda also announced that they will maintain their data plans despite the new tax.

All other standardized and customized voice and data bundles remain unchanged and are accessible on all our platforms. We believe everyone deserves the benefits of a modern, connected life,” MTN said in the statement.