According to reports by the Daily Monitor, government revenue collection agency; the Uganda Revenue Authority (URA) has collected UGX103 billion (approx. USD$27,395,425) from mobile money tax between July and September. This is, however, UGX48 billion short of the expected UGX151.5 billion (approx. USD$40 million).
In the month of July when the tax went effective, the body reported a total collection of UGX22 billion (approx. USD$5.8 million). Subsequently, Bank of Uganda and telecom operators reported a significant drop in mobile money transactions. MTN Uganda has reported a 30 percent decline in its revenue since the taxes came into effect.
On July 18th, State Minister for Finance David Bahati announced that the 1% tax on mobile cash deposits would be scrapped off because it was effected in error, leaving the levy on only withdraw transactions. Thus, on reason to why they (URA) didn’t reach their expected collection – UGX151.5 billion, URA Public Affairs Manager; Ian Rumanyika reported that the revision on the tax could have affected their collection.
“When the 1% tax was in full effect, where both Withdraws and Deposits were taxed, they registered more collection but in the last days on August and September when the President said only withdraws should be taxed, there was a reduction,” Ian Rumanyika told the media.
Early last month the mobile money tax on withdrawing was revised to 0.5% from 1%. However, there was no mention/comment of when this would go into effect. Customers still report that they are being charged 1% even after the Parliament came to an agreement of charging 0.5%.
With the tax now set to 0.5%, Ian Rumanyika said this has forced the revenue authority to lower its target for the quarter ending December. “URA will seek to collect Shs30.3b in mobile money tax in the period running to December at a rate of 0.5 percent,” he said.
See Also:
New Tax on Social Media and Mobile Money Transactions not welcome by many
New Mobile Money Tax is 0.5%, not 1% - Claims President Museveni
Government Makes u-turn on Mobile Money Tax, Scraps off 1% for Sending
Mobile Money Tax Revised From 1% to 0.5% on Withdraw Transactions
Till When Will the 0.5% Mobile Money Tax on Withdraws Go Effective?
The post URA Reveals UGX103 Billion Collected From Mobile Money Tax Between July & September appeared first on PC Tech Magazine.
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