Uganda brings in UGX103bn from mobile money tax

6 Nov 2018

The government of Uganda says its controversial tax on mobile money services raised UGX103 billion (USD27.4 million) in the three months to end-September. When it was implemented at the start of July, the tax was blasted by critics who said it would hamper the uptake of financial services among users who did not have access to traditional banking facilities. Authorities responded by lowering the level of tax from 1% to 0.5%, while also collecting duty only from withdrawals rather than all transactions (withdrawals, deposits and transfers).

The government had initially hoped to bring in UGX151.5 billion in the July-September quarter, but says the alterations in late August meant it could not hit its target. It expects to raise UGX30.3 billion in the final three months of 2018, according to a report from The Monitor.

Separately, local cellco MTN Uganda has altered its method for collecting tax on social media services. The UGX200 daily payment will now be valid for a full 24 hours from payment rather than expiring at midnight.

Uganda, MTN Uganda