GSMA, Uganda to meet over mobile-money tax plan

27 July 2018

Money Transfer

GSMA, the body that oversees the telecoms industry globally, has announced that it will meet with the Ugandan government in October to discuss the recently imposed mobile money taxes.

Last month, parliament passed a law that imposed a 1 per cent tax on mobile-money transactions, including depositing, sending, receiving and withdrawal, as well as a daily Ush200 ($0.05) over-the-top tax on social media services.

The tax elicited mass protests, with activists marching in the streets and others taking to social media to vent their shock and frustrations.

Many said the tax will only succeed in taking back the economy to cash transactions and affect jobs.

“We want to engage the government so that we can clearly understand their perspective, and then we shall pick it from theres,” Said Kenechi Okeleke, lead analyst at GSMA Intelligence.

After pressure from consumers, Kampala dropped three of the four levies it had imposed on mobile money transactions, and now maintains only a 0.5 per cent charge on cash withdrawals. Read the full article on The East African here.