Taxation in Uganda

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Mobile Money dealers and civil society activists have asked lawmakers scrutinising the proposed amendments to excise duty on Mobile Money transactions to drop the 0.5 per cent tax in public interest.

Uganda’s new social media tax will damage business and the economy and cool investor interest in its new IT sector that has wooed global giants Facebook and Google, industry executives said on Monday.

Campaigners against Uganda’s tax on social media have been broadcasting calls on loudspeakers urging users not to pay the levy, playing a game of cat-and-mouse with police, witnesses said on Tuesday.

Uganda announced Tuesday that it has so far collected Ush7 billion (about Ksh188.4 million) from the newly-introduced tax on social media and mobile money transactions just a week into the new financial year.

Despite protests within and outside Uganda, the over the top (OTT) Shs 200 daily tax on use of social media will stay because the country needs resources to broaden internet coverage, government has said.

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