Bank of Uganda finally backs 0.5% Mobile money tax

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Bank of Uganda has harmonized its position with the ministry of finance over the proposed 0.5 tax on withdrawals on mobile money.

In  July this year,  government tabled the excise duty amendment bill in which it was seeking the reduction excise duty from one percent on all transactions to 0.5 percent on withdrawals on mobile money which the bank of Uganda opposed saying this was still too high and it will affect the mobile money industry.

The governor bank of Uganda Emmanuel Mutebile together with the minister of state planning David Bahati have informed mps on the finance committee that they had a meeting and agreed on the proposed 0.5 taxations.

Mutebile also informed the committee the provisions in the financial institutions act 2004 possess limitations on licensing of mobile money services since the financial institutions act applies to deposit taking institutions only but says that national payment systems bill will be tabled in October.

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