The government has announced plans to remove taxes on low-cost smartphones, aiming to enhance digital accessibility and accelerate internet affordability across the country.
This move, revealed by Uganda Communications Commission (UCC) Executive Director Nyombi Thembo at the Mobile World Congress MEC Barcelona 2025, seeks to bridge the digital divide and promote digital inclusion.
Nyombi highlighted the importance of making internet-enabled devices more affordable as a key step toward achieving greater digital access for the population.
“As a regulator, I have witnessed the consistent drop in internet costs over the past decade. In the next two to three years, we anticipate this will align with our digital aspirations,” he said.
While Uganda already boasts the most affordable internet in the region, Nyombi acknowledged that the high cost of smartphones has remained a significant barrier to widespread digital adoption, particularly for low-income communities.
“The cost of internet no longer concerns me; I’ve seen it decline and know it will continue to do so. However, the affordability of handsets is still a challenge,” he stated.
“By removing taxes on low-cost smartphones, we aim to make digital services even more accessible.”
This initiative is part of Uganda’s broader digital transformation strategy, which includes expanding broadband infrastructure, boosting digital literacy, and supporting local content creation.
The government believes that reducing smartphone prices will stimulate the use of e-commerce, mobile banking, and e-government services, fostering economic growth.
While specifics on the tax exemptions and the implementation timeline are yet to be finalized, there are indications that the removal of taxes on low-cost smartphones could be complemented by higher taxes on higher-end devices.
This development is expected to benefit a large portion of the population and drive Uganda further toward its digital future.