- February 6, 2019
- Posted by: Myles Freedman
- Category: Finance, More Africa News
Tax on Mobile Money, introduced by the Government of Uganda on 1 st July 2018, generated twice as much revenue as expected by the state.
According to the National Tax Authority (URA), the tax levied at 0.5%, collectible on the withdrawal of money only, produced 104.75 billion Ugandan shillings (US $ 28,349,508), from July to December 2018. That is 50 billion shillings more than the 54.75 billion shillings (US $ 14,817,523) provided by the state.
The tax on the Mobile Money has recorded very good financial performance unlike those on applications Over-The-Top (OTT) such as Facebook, WhatsApp, Viber or Skype. The OTT tax generated only 21.12 billion shillings (US $ 5,715,910). The government had set its ambitions at 135.21 billion shillings ($ 36,593,194). Only 15.62% of the forecast amount.
Vincent Seruma, URA’s Deputy Commissioner for Public Affairs and Business, explained the underperformance of the OTT tax by “using alternative means to access social media” . The use of virtual private networks (VPNs) is causing the deficit of 114.09 billion shillings (30,877,283 US dollars) recorded.