The Executive director for Uganda bankers association (UBA) Wilbrod Owor says the newly introduced Mobile Money Tax risks reversing the inroads made in promoting financial inclusion in citizens in the country.
Speaking about annual banker’s conference that is scheduled on July 17, Wilbrod said mobile money tax has made transactions more expensive as he categorically denies that bankers influenced that policy that has seen the introduction of mobile money tax.
“Banking sector is not at war with Mobile money, we are partners with Telecommunication companies, each mobile money wallet has a mirror account in the bank and we are working closely with them,” he said at Serena hotel.
Wilbrod said increased excise duty tax is not only affecting telecom companies, he revealed that excise duty in banks was moved from 10 per cent to 15 per cent, driving away customer’s progress in increasing financial inclusion by getting more people to embrace banking.
Patrick Mweheire sympathized with the government on the need to widen its tax base by taxing mobile money however called for a discussion on the methods through which it can be done.
He said if you look at Uganda’s tax to GDP ratio, it’s the lowest in the region therefore government is trying to figure out how to increase its tax base in an informal economy.
“Banks are moving away from ATMS and moving on to agent banking which will enable financial inclusion,” he said.
He said banker’s conference will be rich with speakers from different spaces like legal, payments and many others to discuss changes that are taking space in the banking sector to promote to promote financial sector growth in the economy.
This year’s conference will aim to deliver constructive discussions and recommendations on a range of subject matters affecting the performance and stability of the financial sector at the global, regional as well as domestic level.