President Museveni has signed into law the Excise duty (Amendment) Bill 2018, which reduces the tax on mobile money transactions from 1% to 0.5%.
The law also stipulates that the tax shall apply only to withdrawals. State Minister of Finance for Planning David Bahati says the law now waits to be gazetted before the changes can be effected.
The amendment was made by the parliament following the public condemnation on the new tax that was introduced in July.
Members of the public protested the new new tax with several people looking for alternatives for Mobile Money services as the current tax became too unbearable.