By Kiyimba Bruno
Civil Societies under the umbrella body of Civil Society Budget Advocacy Group (CSBAG) have advised government on various means it can generate revenue from Mobile Money other than imposing a 1% taxation from the financial service.
These were led by the CSBAG boss Julius Mukunda at their offices in Ntinda where he proposed an increase excise duty from 10% to 17.5% on withdraw fees which he believes would generate Shs122 billion.
He said that many people in Uganda need mobile money but if government over taxes them, then they are most likely to run away from the service and will resolve to start moving with bulky sums of money in their bags.
He also proposed that government can instead impose a 0.3% taxation on withdrawal amount on mobile money which can generate a sum of Shs80 billion annually.
Mukunda also proposed that a 0.3% taxation on withdrawal amount for the agency banking which he believes can generate a sum of Shs30 billion.
According to CSBAG, the three proposals if utilized well shall generate a total of Shs232bn which is more than the Shs155bn that government intends to collect by imposing the 1% transaction levy on mobile money.
Currently millions of Ugandans have ran away from banks to mobile money as their convenient mode of money transactions.
Do you have a story in your community or an opinion to share with us: Email us at firstname.lastname@example.org