Telecom companies implement new revised mobile money tax law

By Stephen Kalema

Telecom companies Airtel Uganda Africell and Mobile Telephone Network (MTN) have confirmed their implementation of the revised mobile money tax law of 0.5 on mobile money transactions specifically on with drawls.

According to the statement from MTN on Saturday, the 0.5 tax will apply on only withdrawals but other transactions like depositing, receiving, payments, buying airtime and internet bundles using mobile money will be tax free.

While a statement from Airtel Uganda reads, “No more tax on Airtel money transactions except cash withdrawals at 0.5%. Dial *185# to get started”

This comes after harmonizing the excise duty (Amendment) Act into law by the president, the act limits itself on only withdraws.

In July, the first mobile money law was applicable on all mobile money transactions where 1 per cent was charged on receiving, depositing, and receiving and even on all mobile money services like payment of bills like water, school fees, Yaka bills. However due to public outcry President Museveni ordered Parliament to revise the law and reduce the tax to 0.5%.  The President also ordered all telecom companies to refund their clients.

Museveni said, “I signed this law with some errors and I want Parliament to revise it and all telecom companies should stop levying this tax, let the tax change from 1 per cent to 0.5 per cent and should only be on withdraws.”

In October, Parliament approved bill reducing from 1 per cent to 0.5 per cent in a do and die race. On Friday the bill was gazetted in the Parliament after President Museveni approved it on Thursday and ordered its immediate effect.

Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com