By Kampala Post Reporter
KAMPALA. MTN Uganda has today(Saturday) implemented the revised tax measures on mobile money transactions from 1% to 0.5% on withdrawals only.
The implementation comes after the assenting of the Excise Duty (Amendment) Act (2018) into law by President Yoweri Museveni.
This Act reduces the tax that went into force on 1st July 2018 and limits its application to only withdrawals from customers’ mobile money wallets.
According to the statement from MTN on Saturday, the tax will not apply to other forms of mobile money transactions like payments, sending and receiving money and deposits or buying of airtime and bundles using MTN Mobile Money.
“This is a welcome move that is applauded by the industry because the customers spoke, and they were listened to. MTN’s hope is that the reduction in the tax will bring back mobile money customers who had been discouraged from using the service due to the high cost of the tax,” MTN noted in the statement.
“We believe that mobile money has greatly accelerated financial inclusion by overcoming access to money barriers. It also further promotes business, trade and commerce especially within the informal sectors of the economy and rural, hard to reach parts of Uganda which have no access to formal financial services," MTN added.
In July, President Yoweri Museveni directed telecom companies to stop levying 1% tax on mobile money transactions.
In a statement, the President ordered mobile money tax to be reduced to 0.5 percent only on withdraws adding that all those people whose tax deductions had been made on the basis of 1% be refunded.
"I signed the law with the error because we could not delay the other measures. However, parliament, when it reconvenes, will be requested to correct it. The ones whose deductions had been made on the basis of 1% should have their money reimbursed," said President Museveni in July.