As some internet service providers (ISPs) start increasing their data prices due to the newly introduced 12% excise duty, MTN Uganda has announced they will not follow suit. The new tax began that is effective July 1, 2021, will replace the Over the Top (OTT) tax of UGX 200 per day was has been introduced in 2018.
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In a statement, MTN Uganda has informed all its customers that “All customers can now access the internet and all social media platforms without paying the said tax.” The company has discontinued all OTT tax-inclusive data bundles. All other standardized and customized voice and data bundles remain unchanged and are accessible on the MTN platforms by dialing *150#.
“We believe that everyone deserves the benefits of a modern, connected life.” the company added in a statement to Techjaja.
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.
