President Yoweri Museveni has directed that all those people who were earlier deducted the 1% Mobile Money Tax while making transaction be refunded.
The president said the 1% mobile money tax came by mistake.
“Parliament, when it reconvenes, will be requested to correct it. The ones whose deductions had been made on the basis of 1% should have their money reimbursed,” the statement reads in part.
The 1% tax on Mobile Money transactions and Shs 200 daily tax on Social Media which took effect on 1st July at the beginning of the 2018/19 financial year, received resistance and criticism from Ugandans.
Museveni would a few days later in a statement clarify, that the Mobile Money tax should have been 0.5% and not 1%.
Although Parliament is expected to make an amendment on the taxes, Museveni said, the tax on Mobile Money cannot be revoked but only reduced since many people’s earnings are not known.
The president insisted that the tax on Social Media should stay because according to him, Social Media is a luxury unlike Mobile Money.