Government drafts new law to cut mobile money tax

By Franklin Draku

The ministry of finance, planning and economic development is planning to introduce a new bill to repeal the recently passed tax amendment bill that slapped a one percent tax on mobile money.

The decision follows an uproar from the public about the tax, with many abandoning the mobile money services.

Faced with stiff resistance, president Yoweri Museveni last evening issued a statement, saying the one percent was a misinformation and that they actual tax should have been 0.5 percent.

The president also said mobile money deposits do not attract taxes and therefore should not be taxed.

On social media tax, the president remained defiant, saying Ugandans who want to always spread false propaganda on social media must pay for it.

Gabriel Ajedra, the state minister for finance in charge of general duties said as the ministry responsible, they are drafting a new bill to be sent to the parliament to effect the president’s directive.

Wilfred Niwagaba, the shadow attorney general said the directive from the president shows that government is panicking.

Government had planned to collect between Shs400b-Shs1.4trillion in social media and mobile money taxes.