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Mobile Money Agents Feel Pinch of New Taxes :: Uganda Radionetwork
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Mobile Money Agents Feel Pinch of New Taxes

Mobile Money agents that Uganda Radio Network interviewed says customer numbers are already reducing. For instance, Namanye Jacqueline who operates a mobile money stall Kiira Road in Kamwokya says new taxes are deliberate means by government to chase them out of the business. She says the tax is more than double taxation because it involves many charges from the time one deposits the money until its withdrawn.
A mobile money stall: mobile money agents says new taxes are lowering customer numbers

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Mobile money agents are already feeling the negative effect of the new taxes that came into operation on July 1st 2018 at the start of the 2018/19 financial year. 

The new one percent tax on mobile money transaction is an addition to other taxes government charged in the previous years. The one percent tax is charged on deposit, receiving and withdraw. For instance, a million transaction will be costing about Uganda shillings 50,000 but it would cost about half the amount previously.

The implication of the new 1 percent tax is that, if a person is sending one million, he or she will be charged 10,000 deposit tax (1 percent), 2000 sending fee, 9880 receiving fee (1 percent) of UGX 988,000 (received amount), withdraw fee of 12,500. The person withdrawing the money is again charged one percent withdraw tax amounting to UGX 9,781 meaning that the receiver finally withdraws UGX 955,839.

Mobile Money agents that Uganda Radio Network interviewed on Monday say customer numbers are already reducing. For instance, Namanye Jacqueline who operates a mobile money stall along Kiira Road in Kamwokya says new taxes are deliberate means by the government to chase them out of the business. She says the tax is more than double taxation because it involves many charges from the time one deposits the money until it's withdrawn

//Cue in: "bakasala ela withdrawing….

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Papa Elijah, who operates a stall at Acacia Mall in Kamwokya says that customers will go back to banks where costs are still low, pushing mobile money agents out of the businesses.

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Prior to the introduction of the new taxes, Elijah says he would get about 50 clients by mid-day but the time our reporter talked to him, he had only 10 clients. He said the new taxes have scared clients who fear bloated sending and receiving costs. 

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Bridget Nakamanya, another mobile money agent expressed fears that though the taxes have been effected, many clients don't know about them. She says agents have taken on the role of again explaining these taxes to customers.

//Cue in: "okuva lweza tandise…

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Equally, Wilberforce Kizza another agent in Kamokya says that the hiked taxes are discouraging customers from using mobile money to send money.

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