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Mobile Money Agents in Campaign to Beat New Tax :: Uganda Radionetwork
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Mobile Money Agents in Campaign to Beat New Tax

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Godwin Kidima of Kidima Investments Liimited in Luweero says they have nothing to do but to use all possible ways to beat the taxes so as to stay in business. He says many people have already abandoned mobile money citing the exorbitant tax and resorted to traditional ways of sending money.
Sam Serunjogi of Serunjogi Investments Ltd explaining how they intend to dodge taxes.

Audio 5

More than 100 mobile money agents in Luweero district have launched a campaign to compel government to review the newly introduced tax on each mobile money transaction. On Sunday, mobile telecom companies started deducting one percent from each mobile money transaction in line with the excise duty amendment act (2018).

A statement from the telecom companies said the tax would apply to deposits, withdrawals, those sending money and all forms of payments. This is in addition to the taxes and charges levied by the telecoms.

Mobile money agents in Luweero, describe the tax as unfair, saying it amounts to double taxation and will cripple the economy. The more money agents have launched a campaign to avoid the tax to compel the telecoms and government to review it.

Dan Nsubuga, the Director Mamba Connections Limited in Wobulenzi town, says they intend to conduct agent to agent transfers to eliminate the exorbitant charges. He explains that the telecoms don't benefit from such transaction since they are free of any charge and therefor deny government taxes.

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Sam Serunjogi of Serunjogi Investments Limited in Busula trading center, says their strategy doesn't contradict any laws, saying they aim is to fight multiple taxation. He however, says this will only be applicable to people depositing less than Shillings 300,000.  However, cabinet has since directed the telecoms to stop levying the tax on deposits on personal mobile money accounts.  Despite this, Serunjogi insists the entire tax must go.

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Godwin Kidima of Kidima Investments Liimited in Luweero says they have nothing to do but to use all possible ways to beat the taxes so as to stay in business. He says many people have already abandoned mobile money citing the exorbitant tax and resorted to traditional ways of sending money.

He says many people in Luweero have been sending and receiving money  from Kampala through mobile money but the introduction of tax has made it more that the transport fare .

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Hadijjah Kayondo of Yesu Mugagga Investments says the mobile money tax was introduced in bad faith, adding that it will drive many out of business and fuel crime. According to Kayondo, mobile money has been employing many young girls, who are likely to end up in prostitution should the business be affected.

The vendors want parliament to reconvene and revise the tax immediately to spur development. Telecoms have not yet reacted to the campaign. However, last year telecoms directed agents to make deposits directly on the client's mobile money account after noticing dwindling returns. The companies also reduced the commissions for agents.