Social Media And Mobile Money Tax Bring A Huge Decline In URA Revenues

Posted by: lukwago J in Economy November 6, 2018

The Uganda Revenue Authority ( URA ) has reported declines in the collection of revenue from the two controversial bills that were hit on us mid this year and that’s the mobile money tax and (OTT) which is basically intended to regulate the use of social media in Uganda.

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URA claims to have failed to hit the target of 151.5 billion only collecting 103 billion meaning the tax body lost 48 billion in this first financial year 2018/2019.

According to data from URA, they collected 103 billion in the month of July and September when the tax had just been introduced and still on the initial 1% before the president reducing the 1% tax to 0.5%.

Data from the tax body further shows that before the president cut the 1% it had already brought in shs 22 billion only in the month of July. Whereas the shs 200 for OTT had contributed shs 4.3 billion already.

Just after a month when these tax were introduced, telecom companies and bank of Uganda reported a decline in mobile money transactions by an insane amount that zeroed down to shs 672 billion.

Mr Ian Rumanyika who’s the URA public relations officer further stated that the situation is expected to be worse in the 2nd quarter of the financial year.

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