Uganda’s Cabinet on Monday 16th July 2018 sliced off three of four levies it had imposed on mobile money transactions which include; depositing, sending, receiving and withdrawing cash to only withdraw which will constitute 0.5 percent.
However, over the top tax (social media) levy was maintained to stay at Ushs200 ($0.05) for one to access the social networks.
Upon sitting on Monday, Cabinet approved the amendment of the Excise Duty Act, 2015 and directed Minister of Finance, Planning and Economic Development in consultation with the Attorney General to prepare an Excise Duty (Amendment) Bill, 2018 to be tabled before Parliament tomorrow Thursday July 19, 2018.
Minister for ICT and National Guidance, Frank Tumwebaze said; ‘’The amendment includes the reduction from 1 percent to 0.5 percent which applies only to withdraws’’.
He further maintained that if one sends mobile money and transact digitally to pay utility bills, school fees or use e-wallet to pay for any service, there will be no tax applied.
