Lobby groups cranked up pressure on the Ugandan government to scrap a new mobile money tax protesters call a “regressive” move which will inhibit financial inclusion.
Newspaper Daily Monitor and a number of other outlets reported comments from several groups urging a rethink on proposals to add a 10 per cent levy to commission taken on mobile money transactions.
Protesters say users’ transactions are already subject to substantial processing fees and taxes, and these – combined with the new levy – will hit poorer members of society hardest.
Organisations lobbying authorities over the charge include the Tax Justice Alliance, Consumer Education Trust and Civil Society Budget Advocacy Group.
In addition to warnings on hampering financial inclusion and discouraging mobile money usage, the groups pointed to a potential impact on 150,000 agents in Uganda offering services related to mobile money provision.
Mobile money services are offered by a number of companies in the country, including the two largest mobile operators by connections, MTN and Airtel.