Cabinet Stops Tax On Mobile Money Deposits

Cabinet has directed telecom companies to stop taxing people depositing cash on their personal mobile money accounts.

The State Finance Minister, David Bahati, disclosed this during the cabinet presser at Uganda Media Centre today.

On Sunday, telecom companies started effecting the one percent tax deduction on all mobile money transactions. In a public notice to mobile money users, the telecom companies said the tax would apply to deposits, withdrawal, sending and all kinds of payments.

The deductions drew angry protests from mobile money users accusing government of double taxation.

Minister David Bahati says the mobile money levy came up for discussion in cabinet on Monday. He says cabinet clarified that the tax isn’t applicable on deposits on personal mobile money accounts.

Apart from removing the tax on personal deposits, Bahati says the tax will be enforced as it was passed by parliament. He explained that government will review the new tax where necessary.

Bahati also said they have asked telecom companies to invent and innovate ways of ensuring that social media users pay the Shillings 200 levy conveniently.

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4 thoughts on “Cabinet Stops Tax On Mobile Money Deposits

  1. still worse new tax on mobile money should be totally abolished

  2. The most effective way of collecting social media tax ,would be , taxing the telecommunication companies, then the intercommunication companies put the tax no the bundles.

  3. Government collect takes and we don’t see the accountability since when has gov’t ever come out and display the accountability out to tax payers just you hear money has been eaten in ministry of land y shouldn’t they come out and account for money given to different sector before the new financial year. Gov’t should wake up and think twice otherwise we tax payers are suffering nad ministers are enjoying.

  4. Uganda Uganda!!

    I Wish West Nile Was A Country On Its Own.

    Very Soon We Shall Pay For The Oxgyen We Breath.

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