Uganda’s prime minister, Ruhakana Rugunda has announced that government will review the controversial social media and mobile money taxes, in the wake of a public outcry.
The parliament last month passed the Excise Duty (Amendment) Bill 2018 that introduced a levy of 200 shillings ($0.05) per day for access to a range of online services. Some platforms affected by the tax include Facebook, Twitter, WhatsApp, Google Hangouts, YouTube, Skype, Yahoo Messenger.
The new taxes which have been implemented by the country’s telecommunications companies since July 1, also saw Ugandans pay a 1% tax on all mobile money transactions. The mobile money tax has since been revised by the country’s president, Yoweri Museveni to 0.5%.
I would like to assure this Parliament that Government is committed to ensuring that the tax on mobile money and OTT are designed taking into account the public concerns and balancing the need to raise revenue to finance our development agenda.
Ugandans resist new taxes
Rugunda told a session of parliament on Wednesday that government has noted “public concerns regarding some of the elements in implementation of especially tax on mobile money transactions and OTT.”
The same day, a Ugandan legislator and three journalists were arrested by police, as they participated in a public demonstration against implementation of the taxes. Resistance to the tax has been very vocal on social media platforms using hashtags such as #ThisTaxMustGo.
Still saddened that Police has refused to release – even on bond – the three arrested protestors of #ThisTaxMustGo
They haven’t been charged. DPC insists he is keeping them for 48 hours to ‘teach them a lesson’
Blatant misuse and abuse of power.
— Mujuni Raymond (@qataharraymond) July 11, 2018
Rugunda noted that the president has provided guidance on the matter, and urged further discussion on the matter so the country can reach consensus on revenue collection vis a vis the country’s development agenda.
Rugunda, who id the leader of government business said the review is being expedited to ensure that an Amendment of the Excise Duty (Amendment) Act 2018 is presented to parliament for debate on Thursday next week.
“I would like to assure this Parliament that Government is committed to ensuring that the tax on mobile money and OTT are designed taking into account the public concerns and balancing the need to raise revenue to finance our development agenda,” he added.
Uganda has about 23.6 million mobile phone subscribers, 17 million of whom use the internet, according to the state-run Uganda Communications Commission.