The leading social power house located in California USA has threatened to withdraw its multiple dollar investment it had planned to invest in the northern part of Uganda if the government continues to tax social media taxes.
Facebook had announced in 2017 that it is planning to partner with Uganda’s Airtel to build a 770km fiber internet network to connect the country to its backbone in order to deliver fast internet to its users at cheaper rate through Bhart Airtel of Uganda
Facebook’s development team in Africa through its public policy manager Boakye Kojo announced this Monday morning that they may be forced to take their project elsewhere instead of the country
In his own words he said
“The model of our investment plan will be hurt by the tax in Over the Top services and the company will have to hold back on the investment worth millions of dollars,”
The tax in question was implemented by the government to encourage Ugandans to work hard and leave “lugambo” or rumors on the social media platforms. The tax was introduced in 2018/19 budget to widen on tax base.
According to the survey carried out by an independent & prominent body known as White head communications shows that 57% of Ugandans accessing the social media services are using VPN and other 30% using Wi-Fi or office internet and only 13% of Ugandans are paying the OTT tax and not on daily basis.
This therefore incapacitates the plans the government had in mind to widen its tax base.