UGANDA:Govt dragged to court over mobile money tax

JULY 21,2014.

NEW VISION.

CITY economist and consultant Joshua Tumwine has petitioned the Constitutional Court seeking to stop the Government from collecting tax on Mobile Money withdrawals, saying the act infringes the Constitution.

Tumwine dragged the Attorney General (AG) and the Uganda Revenue Authority (URA) to the court seeking a declaration that by recognizing the business and taxation of 10% exercise duty on Money Mobile withdrawal, the Ministry of Finance, Planning and Economic Development contravened the Constitution.

Through Muwema, Mugerwa Advocates and KSMO Advocates, Tumwine is also seeking a declaration that the Ministerial act of recognizing the business and taxation of the mobile money services following the reading of the national budget, amounted to legitimization of illegal business that contravened the Financial Institutions Act.

It also undermines the rule of law in business and; undermines and interferes with the Constitutional mandate of the Bank of Uganda to properly regulate the financial sector and; as a result, the ministerial act infringes and contravenes the provisos of the Constitution.

It also amounts to a criminal offence under the Financial Institutions At, aids and abets the commissioning of a criminal offence and; enables the offender to evade criminal sanctions as is a violation of the Constitution.

Tumwine further alleges that the ministerial act also promotes unequal and discriminatory treatment before and under the law, which is a violation of the Constitution.

The petitioner seeks a permanent injunction restraining the Attorney General and the URA and their agents from continuing to recognize and legitimize the business and taxation of the mobile money services until it is legalized.

Finance, Planning, and Economic Development Minister Maria Kiwanuka presented the national budget on June 12, 2014, imposing exercise duty of 10% on Money Mobile services.