Uganda: MTN Increases Mobile Money Charges

FEB 18,2014.

THE OBSERVER.

MTN Uganda has increased Mobile Money rates effective July 2 following the new tax on money transfer services.

"The new Mobile Money rates will have a slight increase on transaction fees. For example, sending Shs 4 million to another Mobile Money registered subscriber will cost Shs 2,200," the MTN Uganda\'s GM Corporate Services, Anthony Katamba, said in a company statement early this week. The previous cost was Shs 2,000.

He said as Uganda\'s leading taxpayer, MTN Uganda has an obligation to support the national development agenda by assisting in tax collection, as prescribed by law.

"Although we feel the tax has been applied at a very early development stage of the Mobile Money product, MTN is committed to continued investment and growth of the service in Uganda," Katamba added.

The national budget aims to widen the tax base, and one of the ways in which government reaches new taxpayers is via consumption taxes on various goods and services.

"According to the new national budget 2013/2014, the 10 per cent levy on Mobile Money is to be applied on transaction fees paid on all money transfer services and as such, the fee is paid by users. It should be noted that the new 10 per cent levy is to be applied on all money transfer services offered in Uganda, including those offered by non-telecom operators," Katamba said.