Finance Minister: Matia Kasaija.

Cabinet is today expected to table mobile money tax amendment bill that is advocating for lowering of one per cent tax that is levied on withdraw of cash using mobile money service.

The development follows a caucus meeting of National Resistance Movement (NRM) MPs that was held at state house. Legislators unanimously agreed that bill be presented before parliament for endorsement.

According to a source that attended the meeting, president Museveni who was the chairman of the meeting found hard to convince MPs to support the maintaining of mobile money tax saying that little money will be used in the improvement of service delivery.

In a long and winding lecture to the legislators, Museveni said social media tax does not affect education and research so it is imposed on all who wanted to use social media platforms. In research that was presented before MPs, Museveni said in 2016/ 2017 over Shs63 trillion was transacted via mobile money and that is a double of Uganda’s budget.

MPs contended that both taxes be discarded saying they have become a burden to citizens and will block the long term yearned for financial inclusion and attaining of middle status income.

The also said the minister for financial Matia Kasaijja was directed to apologize before parliament over allegations of disrespecting legislators. MPs told president Museveni that he been disguising that he doesn’t know about the one per cent mobile money tax yet he signed the proposal endorsing it to Parliament.

Social media and mobile money tax were this financial year introduced in an effort to have self-sufficiency in budget, Social media platforms such as WhatsApp, Twitter, Facebook, You Tube, Viber and Skype among others were subjected to a daily levy of Shs200 as mobile money transaction were subjected to 1 per cent excise duty.

Following various protests against both taxes, Last week President Museveni said 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. Museveni contended that he mistakenly ratified the law without proof reading.