Levy on social media shouldn’t be new to us today. It is part of the Excise Duty (Amendment) Bill, 2018 that was passed by the Parliament of Uganda on 31st of May that imposes a UGX200 daily levied on every mobile phone subscriber that wants to access a social media platform.
The introduction of this levy, according to the President of Uganda; H.E Yoweri Museveni said that it would reduce on ‘gossip’ in the country, as well as tax collected would help in the country’s development. On the other hand, Hon David Bahati come out to say the levy is meant to increase the tax base for service delivery. While State Minister for Finance Hon. Ajedra Gabriel Gadison Aridru told parliament that the tax were needed to help Uganda pay off its growing national debt
But with public outcry, protest, and law suits – to see that the tax is scrapped out, the President came out to say that the levy on social media is here to stay. He made his statements when he came out to say the 1% tax on mobile money was a miscommunication as it was supposed 0.5% – and that’s what the public should debt on, and not the levy on social media.
“The 1% was a miscommunication. The actual figure was 0.5%, half of one percent. That is what we should debate, on the mobile money and not social media,” says the President.
To access OTT services, one has to pay a tax of UGX200 daily, UGX1,400 weekly or UGX6,000 monthly which expires at mid night. The time expiration raised complaints from the public, asking why the levy wouldn’t expire at the time of activation.
After 3 months since the pass of the bill, the validation of levy has been extended to 24 hours, effective today.
The post Validation of Levy on OTT Services Extended to 24 Hours, Effective 1st November appeared first on PC Tech Magazine.
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