Experts ask gov’t to remove taxes on internet devices, data, to improve country’s GDP

Technology

Experts in Information, Technology and Communication (ICT) have asked the government to reduce or remove taxes on internet devices.

They argued that high taxes have made the internet equipment expensive making them inaccessible for many Ugandans.

The remarks were made during the SpotlightUG  on NBS Television that aired on Monday night. The discussion was on breaking the digital divide under the theme strategies for empowering women and girls through technology.

The Digital Service Consultant, Vivian Ddambya asked the Ministry of ICT to engage the government to reduce or remove taxes on smartphones, adding that the more internet penetration happens, the higher the GDP. This, she said, has been studied.

“We need to focus on getting as many people online as possible. We should reduce taxes on data, devices. We can basically look at cutting taxes on even the equipment the telecom uses to implement these networks,”Ddambya suggested.

Ddambya also expressed concern over digital literacy in the country, noting the government has done little in changing the curriculum.

“When it comes to digital literacy, the gap between the urban and rural and male and female is still wide. We need to emphasise getting children in rural areas to access these devices. This push is not only to the government but the private sector as well to ensure that these children come up to be digitally literate,” she noted.

 Ddambya called for a whole massive sensitisation on the digital transformation, and for that to happen she believes that the government needs to come together with the private sector and development partners.

The Managing Director at Women in Technology Uganda, Barbara Mutabazi, however, appreciated the government for working towards reducing the cost of the internet compared to 10 years ago.

"If you look at 10 years ago if you want to have an internet connection, the amount of money we were paying 10 years veruses the reliability of what we were getting and what we have now ,the cost continues to go down. It is not necessarily where we want to be compared to East Africa but we are working towards getting the cost lower," she said.  

Experts have said that the private sector has done the most work when it comes to connectivity, calling upon the government to come on board.

The Permanent Secretary in the Ministry of ICT and National Guidance, Dr. Aminah Zawedde said technically the cost of buying internet is very low but the problem is with the cost of maintenance.

Dr Amina Zawedde

But she noted that there is intentional effort being taken to convince the government to waive some taxes.

She said they have partnered with the private sector such as MTN, Stanbic Bank among others on skilling programs.

“We have also partnered with innovation hubs and skilling entities in the country. If we are to make services online compulsory, we have to make them affordable, and the government is working on this. We have had a sector-based approach to planning, but now, the government has come up with programs, “she said.

Zawedde said there is a digital transformation programme that is supposed to guide and work with the different sectors across the country.

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