SOCIAL MEDIA USERS TO PAY 200/= DAILY , TAX ON MOBILE MONEY INCREASED
Ugandans should gear up for a cocktail of taxes if the proposed tax amendments and developments are anything to go by.

Coming from an order from the Uganda Revenue Authority seeking to access account detail of all Ugandans aimed at tax compliance, Ugandans now are headed for a daily charge for using smart phones as well as opting to transact at their comfort using Mobile Money services.

According to the Excise Duty Amendment Bill by the ministry of Finance, each individual that chooses to utlise data bundles to access social media platforms will part with Shs200 on a daily basis.

In the Bill, data services have been categorised as Over the Top services which the ministry indicates is the transmission or receipt of voice or message over the internet protocol network and includes access to virtual network.

The Ministry however insists that those who use mobile data for research and education purposes will be exempted from the levy. It is not clear how these will be categorised or determined as it has been left to the mandate of the minister to determine so.

“….but does not include educational or research sites which shall be gazetted by the Minister,” the Bill reads.

On how government intends to collect the tax, the Bill indicates that a telecommunication service operator providing data used for accessing over the top services is liable to account and pay excise duty on the access to over the top service.

Also due to be charged include among others; Money transfer or withdrawal services including transfers and withdraw permitted to provide communications or money transfer and withdraw services provided by bank and licensed operators.

This will attract a 15 percent levy, up from 10 percent, whereas Mobile Money transactions of receiving and withdrawal will now attract a 1 percent levy, up from NIL.