Business

Scrap off entire Mobile money tax – Mayiga

Mayiga and other Bulange officials during the Lukiiko seating

The Buganda’s Premier Charles peter Mayiga has asked government to completely scrap taxes on all mobile money transactions.

Speaking during the Buganda Lukiiko on Monday 09th July 2018, Mayiga said that abnormal to tax mobile money service as well as transactions as government insists.

“Government must stick on taxing mobile money dealers, but not money being sent because this is likely to negatively impact on financial inclusion.” Mayiga said.

This comes at the time when mobile money dealers have threatened to close their business starting Wednesday if government do not remove the 0.5% tax on mobile money transaction.

It should be noted that President Museveni recently reduced Mobile Money tax from 1% to 0.5% citing that this percentage increment was a miscommunication by some government officials.

“Mobile money transfer, on the other hand, is a useful service. Since the informal sector (juakali, mchomo selling etc) is never taxed and I am always against those direct taxes on those sectors, is it too much for users of the mobile money senders and receivers to also make a modest contribution to the development of their country? 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.” He stated.

He added that Mobile money transfer is, of course, different from the social- media tax, citing that all the moral reasons are in favour of that tax.

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