MTN Uganda has today implemented the new mobile money tax on mobile money transactions. The new tax shifts from the initial 1% to 0.5% on withdrawals only. This move follows the assenting of the Excise Duty (Amendment) Act (2018) into law by President Yoweri Museveni. The revised Act reduces the tax that went into effect on 1st July 2018. However, it also limits the application of the tax to only withdrawals from the customers’ mobile money wallet.
New mobile money tax is only on withdrawals
Consequently, the tax will not apply to other forms of mobile money transactions such as payments, sending and receiving money. The had already scrapped off the tax from deposits. MTN shall not tax customers when they buy airtime and bundles using MTN MoMo. The tax caused a public out cry. Many referred to it as inconsiderate and deserted the mobile money services. MTN’s hope is that the reduction in the tax will bring back mobile money customers who had been discouraged from using the service due to the high cost of the tax.
