Uganda’s government backtracked on part of its newly introduced mobile money tax by removing the levy placed on deposits, NTV reported.
The national TV channel reported comments from minister of state for Planning David Bahati, explaining a tax on deposits made into accounts had been passed last month in error and would be reversed.
Other taxes related to mobile money and social media usage approved at the same time will continue to be implemented despite growing discontent from politicians, pressure groups and community organisations.
Charges still levied include a 1 per cent fee on receiving a mobile money transfer, withdrawing funds or making a payment. Its tax on OTT services and social media is UGX200 ($0.05) per user every day they access services including Facebook, WhatsApp and Skype.
Bahati said the government expects to raise UGX100 billion in its financial year from the so-called social media tax.
Opponents have continued to fight the money taxes, which came into effect on 1 July, criticising the move as hitting the poorest members of society hardest.
A separate NTV report stated groups had accused the government of unfairly taxing the youth with the social media levy describing the policy as “oppressive”.
There are also rumours of physical protests and marches planned against the new charges across popular social media sites.