On 1st July 2021, internet users in Uganda started paying a 12% excise duty on internet data. Sector players have however decried the impact of this tax on businesses saying that it has increased the cost of the internet thus cutting back on their clientele. Liquid Intelligent technologies has increased data fees just like other ISPs did in July.
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Commenting on the tax, Liquid Intelligent technologies CEO Mr. Kahindi Dennis said; “Does it benefit us as a business? Absolutely not! It reduces the number of customers that we get to acquire because it increases the cost of the internet.”
The tax has forces internet service providers to increase the prices of the products they offer in order to accommodate the increament. See the old and new pricing below
| Speeds | Old Price (UGX) | New Price (UGX) |
|---|---|---|
| 5 Mbps | 200,000 | 224,000 |
| 10 Mbps | 400, 000 | 448,500 |
| 15 Mbps | 600,000 | 672,000 |
Only the health and education sectors have been exempted from his charge. The CEO of Liquid Intelligent technologies Mr. Kahindi Dennis says they have had to make significant adjustments to design products that are still relevant to the two sectors to enable continuity. Uganda is believed to be one of the countries with the most expensive when it comes to internet costs.
The country’s new tax is inconsistent with the larger national vision of digital transformation including the national broadband policy of 2018/ 2023 and the digital vision 2020.
