Roke Telkom has informed its clients that with effect from 1st July 2021, that they will slightly increase their data rates for their various data offerings. The changes are in accordance with the recent government of Uganda directive for internet service providers (ISPs) to levy a 12% excise duty and scrap Over the Top (OTT) Taxes.
ALSO READ: Goodbye OTT tax. But how did Uganda get here?
Excise duty is a form of indirect tax imposed on goods for their production, licensing, and sale. By making products more expensive, Excise Duty is supposed to discourage the consumption or waste of goods that are deemed to be harmful to consumers’ health or damaging to the environment. Typically, Excise Duty covers alcohol, tobacco, and some energy products.
| Service | Old Price | New Price |
|---|---|---|
| Roke Classic | UGX 100,000 | UGX 112,000 |
| Roke Unlimited | UGX 250,000 | UGX 280,000 |
| Roke MEGA | UGX 650,000 | UGX 728,000 |
The 12% excise duty is to be levied on the net price of the services after which Value Added Tax (VAT) will apply. The Roke Classic bundle has been increased from UGX 100,000 to UGX 112,000 and Roke Unlimited now costs UGX 280,000 up from UGX 250,000. Roke Mega subscribers will have to add more UGX 78,000 from their previous bill as they have to now part with UGX 728,000.
The new tax comes at a time when most Ugandans are trying to survive the covid-19 pandemic. We expect other telecom companies to annouce similar price hikes in their data services.
