Don’t amend, scrap the law – Mobile money dealers tell gov’t
Ahead of next week’s anticipated review of the mobile money and social media taxes, mobile money dealers feel that the best way forward is for the government to drop the law.
Speaking at a press conference at Ssekawa motel at Kibuye near Kampala, the mobile money dealers said that 1% new tax is an addition to the already existing multiple taxes on mobile money transactions.
According to Ben Kamyuka the spokesman of the mobile money dealers association, since July 1 when the mobile money tax came into effect, there has been a significant drop in mobile money transactions and in effect the commission the dealers earn from telecom companies.
The dealers say, the taxes have become unbearable and affecting their business returns. ‘’The taxes are already too much for us. We pay for a license and pay taxes to Kampala Capital City Authority. Initially we paid 6% now it has increased to 10%.
At the end of the month you need to compute returns and pay a tax to Uganda Revenue
Authority” said Shamim Namukasa, a Mobile money Operator in Kampala.
Their association chairman, Mathias Lukyamuzi asked the Speaker of Parliament Rebecca Kadaga to involve them once a bill to amend the law is tabled in Parliament.
“The Parliamentarians that passed it are the same ones to review it, we cannot be confident that they will change what they passed. We need as dealers to be there and educate them on what the 1% levy means,” Lukyamuzi said.
In a statement to Parliament on Wednesday, Prime Minister Dr Ruhakana Rugunda said government would table an amendment to the Excise Duty (Amendment) Act 2018 on Thursday July 19.