Uganda:Govt abandons plans to tax Mobile Money deposits

The government of Uganda has revealed that the one percent tax charged when depositing money on Mobile Money will be scrapped off and it was an error that was made on the 1st July when the social media tax took effect.

The Ministers of state in charge of Planning David Bahati on Tuesday clarified that the 1% tax that was charged on deposit on mobile money on one's account was an error.

Bahati also noted that as cabinet they resolved that the new taxes would stay and stressed that in the region Uganda has got the lowest tax base.

Bahati also noted that so far, the government expects to earn over 100 billion from the new OTT tax in the new financial year.

He also noted that this money will help solve a number of infrastructural problems

Meanwhile, Bahati also noted that between March and April of 2019 Plans have finalised to launch Uganda Airlines with 129 billion shillings that have been put for it to kick start.