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Home News National News

FDC advises govt to increase VAT and drop OTT

Reporter by Reporter
July 16, 2018
in National News, News
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FDC advises govt to increase VAT and drop OTT
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By Damalie Mukhaye.

Debate on the controversial mobile money tax rages on with the government now advised to increase excise duty and value added tax VAT as opposed to 1% levy on mobile money transactions which is illegal and unfair to Ugandans.

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Speaking to journalists at the opposition forum for Democratic change headquarters in Najjanakumbi, the deputy spokesperson Paul Mwiru says currently telecom companies pay 12% and 18% in excise duty and VAT taxes on mobile money.

He says the 1% tax that was effected on July 1st has already negatively affected the economy since many have resorted to keeping their money in the houses while scores have lost employment.

Mwiru adds that upto 54% of the population can access mobile money services within a radius of 1km in rural areas as opposed to just 16% that can access formal banking services.

The Prime Minister announced earlier that government would this week table a motion on possible amendment Excise Duty (Amendment) Act 2018 that imposed the tax.

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Women rights activists call for equitable, quality education for girl child

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