As some internet service providers (ISPs) start increasing their data prices due to the newly introduced 12% excise duty, Africell Uganda has followed suit and announced that they have removed the OTT tax. The new tax began effective July 1, 2021, to replace the Over the Top (OTT) tax of UGX 200 per day was has been introduced in 2018.
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In an SMS to its clients, Africell Uganda said, “Dear Customers, kindly note that we have removed OTT requirement as per government directives. Dail *133#” to enjoy the best and most affordable data bundles.” This statement has been vaguely been interpreted to mean that the telecom company may not increase their data bundles at least for now. All other standardized and customized voice and data bundles remain unchanged.
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.
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