Uganda Eyes tax on Mobile Internet

August 19, 2016 Taxation in Uganda

Mobile Money TransferKAMPALA – Mobile data in Uganda may soon be more expensive, as the government looks at slapping a tax on one of the only mobile services left untaxed in the country.

Last week the Parliamentary Finance Committee of Uganda was presented with a new proposal to levy a tax on mobile internet data used in the country.

Currently, almost all services which can be rendered in Uganda, such as 12 percent excise tax on phone calls or a 20 percent on value added mobile services.

However, currently no taxes are levied in the consumption of mobile data, regardless of how the data is used.

The call for the tax was spurred by a significant drop in the level of collections of revenues from mobile excise taxes, which is believed to have been caused by an increased propensity by taxpayers to use data-based applications to send messages, make call, and obtain information.

It is believed that the proposed measure is likely to be implemented, with the only question remaining being how quickly it will come into effect.

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