Thursday
May 3
2018

Uganda’s Taxes on Mobile Money to Stifle Inclusion, say Financial Institutions

By Dorothy Nakaweesi

Proposed taxes on mobile money transactions are likely to negatively impact financial inclusion, according to a number of players involved in curbing financial exclusion.

Speaking during the closure of the Shs23b Uganda Rural Challenge fund, representatives from financial institutions said the taxes will make mobile money, a key financial inclusion vehicle, unaffordable.

Apart from mobile, government has also proposed new taxes on Saccos, another key vehicle for financial inclusion.

Ms Mona Muguma Ssebuliba, the aBi Trust, chief operating officer, told participants that they were concerned as the new taxes will increase the cost of mobile money, which will eventually affect smallholder farmers.

“The day they notice that transacting on mobile money is expensive they will quit, which in a way will negatively affect financial inclusion that we have been trying to achieve for years,” she said.

Photo courtesy of Simone D. McCourtie.

Source: Daily Monitor (link opens in a new window)

Categories
Finance
Tags
digital payments, financial inclusion, fintech, mobile money, taxes