After previous attempts with Warid Telecom failed, Uganda Revenue Authority (URA) has now tapped MTN Uganda in order to allow tax payments using mobile money services.
The second attempt at using mobile money for tax payment will allow taxpayers to use mobile money for clearance of taxes and other non-tax revenue like driving permits, passport fees, government tender fees and court fines, among others. Taxpayers will have a transaction limit of Shs4 million.
"URA is transforming into a client-centric organisation. Anyone that accepts payments to be made and doesn't recognise mobile money payments is not client-centric," Ms Doris Akol, the Commissioner General URA told reporters yesterday.
In 2012, URA signed a similar agreement with then Warid Telecom and Orient Bank but a year later the deal fell through when Airtel acquired Warid. "The buyer did not continue with the payment system but still, they offered fewer options when it came to the types of taxes," she added.
MTN Uganda currently has about 8.7 million mobile money subscribers that URA can tap. The platform also facilitates payment of utility bills and pay-tv. According to Mr Brian Gouldie, the chief executive officer MTN Uganda, this would take taxpayers off the queues in banking halls.