Categories: AFRICA

Ugandans Begin Payment of New Internet Tax

Authorities in Uganda have ordered internet users in the country to from Thursday start paying a 12% excise duty on mobile data.

The levy replaces the infamous “social media tax” – an over-the-top (OTT) services daily tax introduced in 2018 on the use of social media.

The new excise duty comes into effect as the new financial year begins and was introduced earlier this year through an amendment by parliament.

It will not be charged on mobile data purchased for provision of medical and education services, but it is not clear how the distinction will be made.

The “social media tax” triggered protests in July 2018 that were led by opposition politician Robert Kyagulanyi, better known as Bobi Wine, which were violently dispersed by the security forces.

Many Ugandans found ways to bypass it by using Virtual Private Networks (VPNs).

The tax failed to raise as much money as was anticipated. The revenue authority said in July 2019 that it had collected about $14m (£10m) in the 2018-2019 financial year against a projected $80m from the tax.

Taxing of internet use continues to cause a public outcry in Uganda, especially among young people who are increasingly using the internet to start small businesses.

Follow us on:

AriseNews

Recent Posts

Iran’s Supreme Leader Threatens ‘Crushing Response’ To US And Israeli Actions Amid Ongoing Tensions

Iran's Supreme Leader has warned the US and Israel of a "crushing response" following an…

2 hours ago

Kemi Badenoch Wins Conservative Leadership, Vows Party Renewal, A Return to Traditional Values

Kemi Badenoch has pledged to "renew" the Conservative Party and reclaim voters as she was…

7 hours ago

Peter Obi Criticises Court Ruling Halting Rivers State Funds, Calls for Reversal

Peter Obi has criticised the court ruling withholding funds to Rivers State, calling it disturbing…

13 hours ago

AGF Fagbemi Takes Over Prosecution of #EndBadGovernance Protesters Amidst Allegations of Treason

AGF Fagbemi has taken over the prosecution of 114 #EndBadGovernance protesters, addressing alleged treason and…

13 hours ago

NNPC, ONHYM Advance African Atlantic Gas Pipeline Project Amid Regional Collaboration

NNPC and Morocco's ONHYM has advanced the $26 billion African Atlantic Gas Pipeline, emphasising regional…

13 hours ago

TCN Restores Power Supply Through Gombe-Damaturu-Maiduguri Line

TCN has restored power on the Gombe-Damaturu-Maiduguri line, fully operational again after vandalism halted service.

13 hours ago