Gov’t Drags Self On New Tax: Deposits on Individual Mobile Money Accounts Is Tax-Free

Gov’t Drags Self On New Tax: Deposits on Individual Mobile Money Accounts Is Tax-Free

By Andrew Irumba

Government on Tuesday clarified on the 1% tax levied on mobile money transactions saying that deposits on individual accounts will be tax-free.

This followed the enactment of the new taxes on social media and a 1% levy on mobile money that has left many disgruntled with cabinet decisions.

Here is the evidence confirming the Telecoms are already charging clients for depositing,though they have avoided ‘deposit’ in their messages for now for message to look like you have received.

State minister of finance economic planning Hon.David Bahati on Tuesday attempted to reassure Ugandans that the 1% mobile money tax would not apply to those intending to digitize cash in form of mobile money.

While relaying cabinet decisions at the weekly press briefing, the minister said the 1% tax was only intended for transactions on sending, receiving, withdraws and payments.

“People who are using mobile money transactions to deposit won’t be charged. The 1% does not apply to them,” said Hahati.

However, by close of business on Tuesday several Ugandans this website interviewed on Kampala streets confirmed that the 1% tax on deposits was still inforce since Sunday 1st.

The 1% mobile money tax has created debate in the public with many considering it as a barrier for those whose livelihoods depend on mobile money business transactions.

The minister said Ugandans should be more compliant if Uganda is to achieve its 2020 agenda of steady progress.

“101 trillion of the GDP, 62 trillion is transacted through mobile money. So if mobile money is taxed, the revenue generated will help to develop the country”, Bahati explained.

The minister said government would continue to engage UCC and Telecom companies in order to make it easier for citizens to pay the new taxes. Bahati said they had asked innovators to develop new platforms to make this easier.

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