Taxes on mobile money to stifle financial inclusion
Wednesday May 2 2018
Mobile money is a key vehicle that a number of institutions rely on for financial inclusion. PHOTO BY EDGAR R BATTE
Apart from mobile, government has also proposed new taxes on Saccos, another key vehicle for financial inclusion.
Government has proposed a 1 per cent tax on all mobile money transactions, which according to some experts will make the platform unaffordable. Government is also proposing an increment of Excise Duty on mobile money from 10 per cent to 15 per cent.
Government, through the Uganda National Financial Inclusion Strategy 2017-2022 seeks to increase financial inclusion from 20 per cent to 50 per cent. Uganda has slightly about four million accounts.