MTN Uganda Reports Mobile Money Tax Reduces Transactions by Over 40%

An MTN mobile money general manager told the Daily Monitor (Elsa Muzzolini) that after the 1% mobile money tax was introduced on July 1, the average daily transactions of Shs 100 billion daily fell to only Shs 50 or 60 billion during July 2018.

As a result of public protest, complaint and reports of mistakes made in the implementation of the mobile money tax, Excise Duty Amendment Bill No. 2, 2018 has been recently introduced to reduce the mobile money tax from 1% to 0.5% and only imposed on withdrawals.

Also stated was that revenue to government declined from 50% to 30% as a result of the abandonment of mobile money leading to reduced earnings and that over 100,000 agents have been impacted and has resulted in workforce reductions and shutting down of business.

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