The recently concluded 2014/2015 budget is now in effect, and so are the several tax increments introduced. A one Mr Joshua Tumwiine, a private tax consultant and economist has reportedly sued Finance Minister Hon Maria Kiwanuka over the 10% tax duty increment on Mobile money withdrawal fees, a move that was against the financial institutions’ Act and the constitution of the Republic of Uganda.
According to the Daily Monitor, Mr Tumwiine claims that the financial institution’s Act and Bank of Uganda do not recogonise mobile money operators as one of the financial institutions that they regulate thus the minister’s actions are criminal. The government estimates mobile money transactions to be over of 18 trillion shillings and this has made a 10% increase tax on
each withdrawal.
Mr Tumwiine further contends in a filing before the Constitutional Court in Kampala that
[signoff predefined=”Quotation” icon=”icon-pencil”]The ministerial act of recognizing the business and taxation of mobile money services pursuant to the National Budget amounts to legitimisations Act 2004, is an act which undermines the rule of law in business and is inconsistent, taxing mobile money by that percentage only serves to promote unequal and discriminatory treatment before and under the law.[/signoff]
He also wants the court to declare this new tax illegal and also issue a permanent injunction restraining the continued charge of 10% from withdrawals. So far the Attorney General who is listed as one of the respondents has, in his defense has denied all the allegations of legitimizing an illegal trade and asked court to dismiss the petition with costs.
