Long before mobile money tax was introduced earlier in July this year, the financial inclusion rate had annual streaks with major contribution from the robust mobile sector. But then, the dream seems shuttered by the unclarified 0.5% mobile money tax. While Parliament levied 1% tax on all mobile money transactions before the 2018/19 budget reading. President Museveni summoned officials to slash the then 1% barrier to 0.5% as digested to URA through Parliament once again for a 2nd hearing. However, nothing seems to have changed!
The Uganda revenue authority (URA) which doubles as the final institution monitoring the progress and compliance rate of mobile money users towards the tax has never clarified on the 0.5% tax condition. Although Parliament slashed the 1% levy to 0.5%, We’re surprised for the fact that we transacted for a 1% tax off a withdraw last evening to a point that the 0.5% dream seems to be a myth hundreds of miles away.
Who could be fooling who over the 0.5% mobile money tax
Having apologized to citizens over unclear taxes collected during the 1% streak, President Museveni respected the Bank Of Uganda views over the matter. However, after 3months of extensive opposition from telecoms and the final taxpayer, we have never seen a change in the tax as popular newspapers usually state amendments. Nonetheless, here is a quick breakdown of the mobile money tax journey.
31st May – Parliament approves mobile money tax
1st July – Mobile money tax is born through the 2018/19 budget
5th July – Finance Minister sued over mobile money tax
– Government scraps off tax on deposits
– President Museveni reduces mobile money tax to 0.5%
12th July – Telecom companies are ordered to process refunds from the 1% mobile money tax
17th July – Amended excise duty bill to be presented to the house, Mobile money tax reduced
1st August – Telecoms refund over UGX 2.3 billion to customers
27th August – URA fails to collect the projected mobile money tax target
3rd October – Uganda’s mobile money tax amended to 0.5% levied only on withdrawals
16th October – The 1% Mobile money tax policy still exists on withdraws
As a result of a parliamentary seating between Telecom providers and Bank Of Uganda officials to the ministry of finance. We all expected a quick pullback to a 0.5% finish. But since telecom operators managed to cough over UGX 2.3 billion as mobile money tax refunds, then when will the August offsets surface? More so, Is someone somewhere benefiting in the prolonged 1% mobile money tax case?. Share with us your views in the comment section below.
