NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, May 31, 2018

By Daniel Mumbere

Uganda’s parliament on Wednesday approved a law that imposes new taxes on social media services and mobile money transactions.

Critics of the Excise Duty (Amendment) Bill, 2018 had argued that taxing social media would amount to restrictions on freedoms of expression on the internet while taxing mobile money transactions would hurt low income earners who had found solace in the services, after mainstream banks failed to reach them with suitable services.

Government however argued that the needs of poor Ugandans had been considered and that the revenue collected from the new taxes would be used to provide services like ‘free education, free healthcare and free roads’ that are demanded by the citizenry.