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Social media, mobile money and other taxes take effect tonight

Alex Taremwa by Alex Taremwa
June 30, 2018
in Featured Stories, News, Trending
Reading Time: 3 mins read
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The approved taxes for the financial year including one on Social Media and Mobile Money transactions are set to take effect tonight.

Henceforth, not only will you cough a daily Shs200 for Over The Top services (OTT) – a technical term for social media, you will be charged an equivalent of 1% for every mobile money transaction you make.

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The taxes have raise anxiety among Ugandans with some beginning to discuss mechanisms about how to by-pass the dreaded taxes. Among the already available techniques being Virtual Private Networks (VPNs), using public WiFi, changing their smartphone settings to different countries among others.

How to dodge social media tax.
Step 1. Go to play store download TOR
Step2. Once done downloading let it load up to 100% under the Notice
Step 3. select TOR enabled apps and select social media apps.
You are done setting up a secure ad free VPN #SocialmediaTax pic.twitter.com/iobro209ML

— Patience Ndinawe (@PatienceNdinawe) June 30, 2018

Telecom companies have already indicated ways through which the daily payments can be paid noting that they will only be granting access to only those who have paid the charge for a period of 24 hours.

Following the directive from the Government of Uganda, a new Tax is to be implemented on Over The Top (OTT) services effective 1st July 2018. #SocialMediaTax pic.twitter.com/hE0w5pVifr

— MTN Uganda (@mtnug) June 29, 2018

Social Media and Mobile Money taxes are not the only ones taking effect tonight. There are other approved taxes such as a 2.3% tax on opaque beer 5%  tax on spirits and wines.

If you don’t drink any alcoholics, you will still feel the pinch as a 3% tax has also been slapped on cooking oil which will subsequently mean that the price for fast foods such as chapatti, chips, chaps is likely to increase.

Boda-boda prices will most likely not remain the same as Shs200,000 excise duty tax has been introduced on motorcycles on first registration and if you are the kind that talks on phone with bae for ages, expect a 12% tax on all telecommunication services; phone talk time, landlines and value other added services.

If your company has been posting losses for the last seven years consecutively, expect a 0.5% annual gross income tax and if you are a mobile money agent, your commissions from telecom companies for both mobile money and airtime are going to suffer a final 10% tax.

But don’t worry; you are not alone. A withholding tax on gamings, betting and pool betting payments is also set to take effect.

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Tags: #NoDataWeekSocial media tax
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Alex Taremwa

Alex Taremwa

Founder of The Workshop Uganda

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