Innovators concerned over 12% internet data tax

By Benjamin Jumbe

Local digital entrepreneurs and innovators have expressed fear that the recently introduced 12 % tax on internet data will undermine uptake of the digital services in the country.

The government recently introduced a 12 % tax as a measure contained in the Excise duty amendment bill 2021 that repealed the daily 200 shillings Over the Top (OTT) tax.

Speaking at the launch of the 5^th Kampala Innovation Week, the chairman of Startup Uganda Richard Zulu argued that the tax will impact access to digital services especially for the ordinary citizen.

Meanwhile, the Inclusive Digital economy expert of the United Nations Capital Development Fund Richard Ndahiro says they are working with startup Uganda and NITA-U to see how innovators can access digital infrastructure at subsidized rates

The innovation week running from October 22^nd -26^th will be under the theme “Harnessing the power of innovation and entrepreneurship for Uganda’s digital transformation.”