Proposed 'music tax' on new phones, laptops sparks political jitters in Parliament

KAMPALA - A section of lawmakers on the House committee on legal and parliamentary affairs say they are fearful that establishing a private copying level for consumers of copyrighted material would politically backfire.

These echoed this during an interaction with the Uganda Registration Services Bureau (URSB) Registrar General Mercy Kainobwisho on Thursday, August 21, 2025.

Private copying levy is a surcharge or tax imposed on devices capable of storing, copying, or transferring digital content, such as phones, hard drives, and laptops, among others. 

However, it was omitted from the Bill due to concerns from Attorney General (AG) Kiryowa Kiwanuka that it would increase the cost of these gadgets. 

However, a group of musicians, led by Mawokota North MP Hillary Kiyaga (NUP) and State Minister for Gender and Culture Peace Regis Mutuuzo, have in the recent past fervently advocated for its reinstatement. Arguing that it is a lasting measure to recoup revenue lost through the private sharing of creatives’ content.

While chairing the committee on August 21, 2025, Bukhooli North MP Stephen Bakka Mugabi (NRM) said that the committee considered the view that it should be included in the Bill. Before asking whether imposing a small charge on consumers would be burdensome.

“You claim that this would increase the costs of gadgets. How about if we started small? Must it be a big figure that will upset the market?” Mugabi posed.

Political backlash

However, Bugiri Municipality MP Asuman Basalirwa advised his colleagues against venturing into these uncharted waters at 'this time'.

“The other day, the Basubuzi (city traders) were striking because of taxes. Now, tomorrow, they will hear that we recommended having a levy on these gadgets, and these voters will beat us. We must be very careful. The timing of the Bill is not very good,” he implored.

Basalirwa added that he asked the musicians in the previous engagements whether the funds would go into a dedicated fund or be channelled through a designated SACCO, but they were divided on how the money would benefit the sector.

Fast forward, he emphasised that alternative approaches should be explored instead of increasing the tax burden on Ugandans.

“I am very uncomfortable, and as I have said, I have put you on notice. Should it appear in the main report, I am writing a minority,” Basalirwa warned.

Meanwhile, other MPs murmured off the record that this levy could become the proverbial straw that broke the camel’s back. Much like how former Bunyole West MP Geofrey Waluswaka made the mistake of supporting the daily shillings 200 Over the Top (OTT) tax on mobile money transactions and internet usage in the 10th  Parliament.
Only to end facing the wrath of voters at the 2021 elections.

Legal perspective

Presenting shortly after, Robert Kirunda, the convener of the Centre for Law and Emerging Technologies based at Makerere University’s School of Law, warned that even embedding a modest Shillings 1,000 levy in law could open the floodgates to incremental charges.

“You raise a legitimate concern about taxpayer apathy. In the end, whether you call it a levy or a duty or a tax, as long as it is a payment coming out of a purchaser’s pocket, they will see it no other way,” Kirunda cautioned.

While there is value in helping the industry raise revenues, he said the framers of the law should explore more creative alternatives. Such as taxing streaming apps like YouTube, Netflix, Spotify, and Apple Music.

“Google doesn’t sell data. If you think it is in that business, you are five steps behind. Google is in the concentration business, behavioural business. What they are influencing is behaviour. If they are profiting from the behaviour of Ugandans, then they should pay a levy for that,” he argued.

“That, I would support 100 per cent. Why? Because even I, who is contributing to that value by putting my music on YouTube, if they are not going to pay me, at least let them pay the industry. I don’t feel the pinch. But given where the fatigue is now, on the tax regime, I would be hesitant to go that far. Because in the end, once you open the door, you are far more schooled in politics than I, you can tell me how the optics play out,” Kirunda added.

Government's position

Deputy Attorney General (DAG) Jackson Kafuuzi and URSB Registrar General Kainobwisho, who were both in attendance, stuck to their guns that the levy be excluded.

“We still insist on holding the position as Attorney General’s chambers that this proposal has the effect of increasing the cost of the gadgets and affecting the uptake of Information, Communication, Technology (ICT) at a time when we should be encouraging every other person to use ICT in the country. Perhaps going forward, let the law come into place, along the way you will be seeing other mischiefs coming, then we can either consider a review or see what can be done," Kafuuzi opined. 

Section 14 of the Principal Act provides for the private use of copyrighted works under the concept of Fair Use. This doctrine permits the unlicensed use of such works in specific situations. It allows the use of copyrighted material without permission for purposes such as news reporting, teaching, scholarship, research, and for persons with disabilities.

"We propose that we maintain the position of the Honourable Attorney General (AG)... The proposal of stakeholders has an effect of increasing the cost of gadgets, which affects the digital penetration in terms of uptake of ICT in Uganda, which is a key driver in socio-economic development," she argued.