Category Taxation in Uganda

Uganda’s Social Media Tax Already Under Review

July 11, 2018 Taxation in Uganda

mobile tax UgandaKAMPALA – Despite being less than two weeks old, Uganda’s social media tax is already being reviewed.

Uganda’s recently imposed social media tax is becoming an increasingly controversial issue, as parliament revisits the topic, while taxpayers are threatening to protest.

As of July 1st, mobile users in Uganda are required to pay a tax of UGX 200 per day in order to access social media and communication services, such as Facebook, WhatsApp, and Skype.

The tax is understood to be intended to help cover some of Uganda’s debts, and it is also a social issue, as the country’s president Yoweri Museveni that social media is used to “encourage gossip”.

It has now been announced that on July 11th, the country’s parliament will revisit the issue of the tax.

During its review, it is p...

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Uganda Launches Social Media Tax

July 2, 2018 Taxation in Uganda

social media tax ugandaKAMPALA – Uganda’s social media tax has come into effect, blocking access for anyone who has not paid a new daily tax.

Over the weekend the government of Uganda launched its new tax on the use of social media and mobile communication platforms.

From July 1st, any mobile users in Uganda who had not paid the new tax was barred by their service provider from accessing media platforms such as Twitter, Whatsapp, Skype, and Facebook.

The tax is levied at a rate of UGX 200 per day, and must be paid via an electronic payment system to the mobile service provider in order to unlock the social platforms.

The government claims that the new tax will raise funds to be used for free education, healthcare, and roading.

However, opponents of the tax are claiming that the system is stifling communicatio...

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Uganda Passes Mobile Money Tax With Mistakes, Says Finance Minister

June 6, 2018 Taxation in Uganda

Mobile money UgandaKAMPALA – Uganda has gone ahead with its controversial 1 percent mobile money tax, but the finance minister claims that the rate and target of the tax was approved by accident.

Uganda has passed a new tax on mobile money transfers, however, the national Finance minister Matia Kasaija has said the passing was made by mistake.

Under the newly passed tax, transfers made using a mobile money system by a taxpayer in Uganda will be liable for a tax of 1 percent of the value of the transfer.

Mobile money is a popular financial tool for individuals who do not have access to traditional banks and banking facilities.

Taxpayers using mobile money can send or receive payments almost instantly using their mobile phones.

The Finance Minister has now claimed that the initial agreement between the ruli...

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Chinese Firms Evading Ugandan Taxes, Says URA

May 28, 2018 Taxation in Uganda

Ugandan ShillingsKAMPALA – The Ugandan tax authorities are drawing attention to the scale of the tax evasion committed by Chinese businesses operating in the country.

The Uganda Revenue Authority (URA) recently published a list of companies which are understood to be engaged in VAT fraud, noting that a significant portion of the companies is made up of Chinese firms.

The URA has estimated that between 2015 and 2017 the actions of VAT evaders resulted in a loss of UGX 200 billion in tax revenues.

So far the government has recovered UGX 60 billion in lost tax revenues from the tax evading companies on its list.

The URA’s list contained 148 companies, with 93 being operated by foreign interests, and at least 90 of those being from China.

The listed businesses are accused of issuing fake invoices for tra...

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Mobile Money Under Tax Threat in Uganda

May 3, 2018 Taxation in Uganda

Airtel Money - mobile moneyKAMPALA – Taxes on mobile money could seriously dampen the uptake of modern financial technology and systems in Uganda.

On May 1st, at the launch of the Uganda Rural Challenge Fund, representatives of financial institutions in Uganda collectively claimed that the government’s planned tax on mobile money transfers will inhibit financial inclusion.

The government hopes to enact a tax of 1 percent on all mobile money transactions.

Mobile money and other cell phone-centric payment systems have proven to be popular in Uganda, especially among poorer taxpayers who do not have ready access to banks and other traditional financial tools and services.

Uganda currently has an estimated 20 million mobile money users, and the Uganda National Financial Inclusion Strategy 2017-2022 hopes to see the...

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