ICT Ministry wants some taxes on internet devices removed 

A subscriber browses Internet. Photo | File

What you need to know:

  • The taxes, which he did not name, he said, make ICT devices expensive thus making them inaccessible for many Ugandans. 

The Ministry of Information Communication Technology is lobbying removal or reduction of some taxes on internet devices, according to ICT Minister Chris Baryomunsi. 

The taxes, which he did not name, he said, make ICT devices expensive thus making them inaccessible for many Ugandans. 

Speaking on the sidelines of an engagement with the Indian Association of Uganda in Kampala, Mr Baryomunsi said the Ministry of ICT had embarked on discussions in which it will seek removal or reduction of some taxes on ICT devices.
 
This, he said, is one of the ways through which they are seeking to reduce the cost of internet-related services, a key aspect in innovation.

“ICT devices are a bit expensive because of the taxes. We are engaging with Ministry of Finance to see whether some of these taxes would either be reduced or removed to enable Ugandans afford these devices to get connected,” Mr Baryomunsi said. 

However, he did not specify which devices government will be considering in this regard. 

Uganda has one of the highest costs of internet in East Africa, which some experts have said, hinders innovation in ICT that is currently one of the most innovative sectors across the globe. 
The cost has been mainly a result of both direct and indirect taxes. 

In 2018 government introduced over the top tax popularly known as social media tax with President Museveni indicating the tax sought to reduce “rumourmongering” on social sites. 

However, the tax was in June repealed due to poor performance and replaced with a 12 percent surcharge on data. 

Experts have previously warned that whereas government is seeking to expand the tax base, it is blocking innovation, especially in the ICT sector. 

Mr Baryomusi said it was important that many more Ugandans are connected to the internet to maximise innovation and serve delivery.