Telecom giant, Airtel Uganda has started implementing the reduction of 1% to 0.5 per cent mobile money tax which is only applicable to withdraws.
The implementation comes in at a time Uganda’s President Yoweri Kaguta Museveni ascended the Excise Duty (Amendment) (N0.2) Bill, 2018 which provides for the amendment of the mobile money tax of 1% on all transactions to 0.5% on withdraws.
Commenting about the amendment, Mr. V.G. Somasekhar the Airtel Uganda Managing Director expressed gratitude to the Government, Parliament and other Authorities for being responsive to feedback from mobile money users and agents.
“We welcome this change in revising the tax to 0.5% applicable only on withdrawals,” he stated, adding that Airtel pledges to continue providing reliable and affordable telecommunications solutions, while maintaining compliance to the regulatory procedures of Uganda.
Early this year, the President of Uganda assented to the Excise Duty (Amendment) Bill 2018, which placed a 1% levy on receiving, making payments, and withdraws through mobile money transactions.
Following feedback from different stakeholders, the tax on Bank to Wallet transfers and deposits was dropped on July 4, 2018 requiring telecoms to refund mobile money user that had carried out transactions in that season.
“We effected the refund ahead of the industry. The process was seamless,” Mr Somasekhar said.
The move is in the right direction and will facilitate growth and penetration of financial inclusion in Uganda.
