Opposition MPs Insist on Scrapping of Mobile Money, Social Media Taxes

The Opposition in Parliament has rejected Cabinet resolution that the 0.5% tax on Mobile Money be restricted only on withdraws.

Addressing the media at Parliament, the Leader of Opposition in Parliament (LOP), Winnie Kiiza maintained that the new taxes levied on Mobile Money transactions and social media must be scrapped off because they are killing the country’s economy.

Kiiza was flanked by other legislators including; Robert Kyagulanyi, Robert Centenary, Florence Namayanja, Roland Mugume, Robinah Ssentongo, Deogratius Kiyingi among others.

Previously, the Mobile Money levy of 1% was charged on deposits, sending money, payments and withdraws. But after discussing the matter in Cabinet, the President directed that the levy reduces to only 0.5% and that it should be restricted on only withdraws.

Yesterday, the State Minister for Planning, David Bahati told journalists at Uganda Media Centre that an amendment Bill is to be tabled in Parliament tomorrow which will reflect the changes sanctioned by Cabinet on Monday.

However, the opposition MPs insist that the taxes must be rejected because they are an impediment and a blockade against expression, interaction, access to information, job opportunities and entrepreneurship.

“The Mobile tax doesn’t conform to the principles of taxation. It promotes financial exclusion; mobile money is like a transfer earning and collection of tax from such earning amounts to killing your population,” Kiiza said.

Kiiza added that the social media tax should also go since it has hampered easy communication among the different members of the public.

“The MPs are also not communicating effectively with their voters since most of them can’t afford to pay the daily Shs 200 on social media tax,” Kiiza said.

“Social media tax is keeping families apart, there are so many partners that are not staying together because of job related issues and other circumstances and what has been keeping them together is social media,” she said.