Civil Society Organisations dealing with budget issues have warned that the new tax proposals on withholding taxes on mobile money will let people start hoarding their cash.
They also believe that such a tax is actually very discriminatory since it taxes only those in the mobile money services leaving out those in other financial services.
Julius Mukunda, the Executive Director, Civil Society Budget Advocacy Group (CSBAG) was speaking to journalists on the side-lines of the stakeholder breakfast meeting held in Kampala on Digital Taxation.
“For example, when you are taxed 0.5% on a withdrawal from a mobile money, if you withdraw money from an ATM or from a bank, you are not taxed at all. An indication that one, government is discouraging people to use mobile money services in favour of the rich or the banks, but at the same time, it is now not promoting the target it wanted of getting everybody into the money economy. And yet, government continues to us mobile money services to run its programs”, Mr.Mukunda said.
