BOU backtracks on mobile money tax

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

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

BOU officials then argued that the 0.5 per cent tax on Mobile Money was discriminative and was likely to affect financial inclusion.

However, while appearing before the parliamentary committee on Finance, The governor bank of Uganda Emmanuel Tumusiime Mutebile together with the minister of state for Finance in charge of planning David Bahati told members that they had a meeting and agreed on the proposed 0.5 taxations.