Friday
August 3
2018

Telecoms, Bank of Uganda want mobile money tax scrapped

Telecommunication companies MTN and Airtel have asked government to scrap the new mobile money tax that came into effect last month due to the negative impacts it’s having on the economy.

Starting July 1, 2018 government introduced a 1% tax on all mobile money transactions and Shs 200/daily levy on social media usage. Following public outcry and pressure, government has since tabled an amendment bill, Excise Duty Amendment Bill No. 2, 2018 to have the mobile money tax reduced to 0.5% and only limited to withdrawals.

Appearing before the parliamentary committee on finance which is scrutinising the Excise Duty Amendment Bill, officials from MTN and Airtel said mobile money tax has had massive negative effects on the economy.

Wim Vanhelleputte, chief executive officer of MTN Uganda, said there has been a drop in use of mobile money following the introduction of the tax. He said mobile money supports 5,000 Savings and Credit Cooperative Societies (Saccos) and taxing the business is a big risk.

Photo courtesy of Erik (HASH) Hersman.

Source: The Observer (link opens in a new window)

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Airtel, banks, financial services, fintech, mobile banking, mobile finance, mobile money, MTN, regulations, taxes, telecommunications, Uganda