Telecoms wait for president to sign 0.5 per cent mobile money tax law

Telecoms are still charging 1 per cent mobile money tax weeks after the charge was reviewed to 0.5 per cent. FILE PHOTO

What you need to know:

  • Several calls to Mr Chris Obore, the Parliament communications and public affairs director, went unanswered by press time.
  • Mr Matia Kasaija, the Finance minister, asked this reporter to call later as he was in church. However, several calls to his known mobile phone later went unanswered.

Kampala. Weeks after Parliament reviewed the 1 per cent mobile money tax to 0.5 per cent, telecoms continue to charge 1 per cent, saying they are waiting for government to implement the amended law.

The amendments, which were passed by Parliament about three weeks ago, are awaiting the President’s signature.
In July, government passed the Excise Duty amendments, introducing the 1 per cent mobile money tax.
The tax on all mobile money transactions caused outrage, which forced the President to clarify that Cabinet had only agreed on a 0.5 per cent levy.

The law was subsequently recalled but it took Parliament about three months before it could debate and pass the amendments.
To date Ugandans continue to pay the 1 per cent levy weeks after the law was amended.
At the weekend telecommunication companies told Daily Monitor they are yet to receive official communication directing on the way forward.

Ms Justina Ntabgoba, the MTN senior manager corporate affairs, said: “No official communication has come in yet. Uless it came last night [Friday]. I do not think they have communicated yet,” indicating that they will continue to charge the 1 per cent levy until when they get communication on how to implement the amendments.

Similarly, Ms Sumin Namaganda, the Airtel public relations manager, said: “As of yesterday [Friday] no communication had come through instructing us to adjust the changes.”
Last month Mr Wim Vanhelleputte, the MTN chief executive officer, urged government to quickly gazette the reviewed law to quicken implementation of the .0.5 per cent.

After the Bill has been passed by Parliament, it is sent to the President to sign it into law before it is gazetted.
Asked why the President has not yet signed the law, Mr Don Wanyama, the senior presidential press secretary, asked Daily Monitor to crosscheck whether Parliament has forwarded the amended law to the President.

“Has it been sent to him, has Parliament sent it to him. Ask the Office of the Clerk of Parliament if they have sent the document to him,” he said without divulging into details.

Several calls to Mr Chris Obore, the Parliament communications and public affairs director, went unanswered by press time.
Mr Matia Kasaija, the Finance minister, asked this reporter to call later as he was in church. However, several calls to his known mobile phone later went unanswered.

No refund

Recently, government also informed Ugandans that they will not be refunded the 0.5 per cent that the President said had been charged in error.
Mr Keith Muhakanizi, the secretary to the Treasury said recently that they money had already been sent to the consolidated fund.