Governor Bank of Uganda Emmanuel Tumusiime Mutebile has backed 0.5 per cent tax that is levied on mobile money withdrawal services.
In an effort to have self-sufficiency in budget, this financial year, government introduced social media and mobile money tax. With social media platforms such as WhatsApp, Twitter, Facebook, YouTube, Viber and Skype among others have been subjected to a daily levy of Shs200 as mobile money transaction have been subjected to a 1 per cent excise duty.
However, after various protests against and denial of the ministry of finance about the newly introduced tax, Museveni said the one per cent on mobile money tax was a miss communication adding that he meant 0.5 per cent.
He ordered for refund of 0.5 per cent of the tax incurred while transacting on mobile money will be refunded to all people who were deducted one per cent on mobile money transaction.
Later Excise Duty (Amendment) No.2 Bill 2018 that is seeking for reduction of one per cent tax levied on withdraw of cash using mobile money, was drafted and referred to the Committee on Finance, Planning and Economic Development the is chaired by Musasizi Henry for consideration.
State Minister for Finance David Bahati and the Governor Uganda Mutebile presented draft proposals to the finance committee of parliament saying they will empower BoU to supervise payment systems and supervisory oversight over mobile money sector.
They contended that the decision was reached after vast consultations among stake holders the financial sector.
Earlier in August BoU revealed that the constituted tax was negatively affecting the economy since people were not carrying out transaction and it was the easiest way on access money everywhere any time.
Government however, expects to generate Shs951 billion from all the proposed new policy measures and another Shs272 billion from administrative efficiency. In the financial year 2018/19, government plans to collect a total of Shs16.2 trillion tax revenue, which is a task the Uganda Revenue Authority (URA). In the current financial year that ends in early June this year, URA was tasked to collect just above Shs15 trillion as tax revenue.