This financial year (2018/19) is going to take long to be forgotten in the history of Ugandans, because of tough financial conditions imposed on them. Mobile money tax and social media tax both of them have hurt Ugandans and this can be seen in the online grievances displayed and echoed by Ugandans.
This hasn’t only affected low earners and middle class people only (Corporates) but also big telecom companies have cried out loud that their profits are declining due to mobile money tax. One of the big companies is noted to have said their losses have hiked to 30%.
The BoU bosses today as they appeared before parliament’s finance committee warned that the financial transactions have come shot by Shs 672Billions in just weeks since the implementation of the tax.
They further went ahead to describe this tax as discriminative and its effects are yet to be witnessed, this is just the beginning of the situation
It should be noted that the Ugandan government introduced this tax with the aim of boosting and widening the tax base of the country to facilitate the government’s goal of middle income status in few years.
In the meeting big telecom companies MTN recommended the withdrawal of this tax since various implementations such as 15% excise duty and 10% withholding tax are already being taxed.
Let us know through comments and our poll if this tax is useful or its just hurting the economy and poor Ugandans