Why 1% proposed tax on mobile money transactions should be dropped

The 2017 Bank of Uganda statistics indicate that Mobile Money transactions increased by about UGX 10 trillion (22.7%) from UGX 44 trillion in 2016 to UGX 54 trillion in 2017. 86% of all registered mobile money users have savings, 7% have insurance, and 67% borrow. However, mobile money users still struggle financially: e.g. 64% do not have an emergency fund, 31% do not have enough food to eat, and 59% spend more than they earn.Government collects 10% excise duty on all the transaction service fees that a telecom company charges a mobile money user. Whereas this tax is accounted for by the mobile money service providers it is indirectly borne, by the service users (depending on the pricing flexibility, profitability and market competition). Government in FY 2018/19 is proposing to increase Excise duty by 15%. CLICK HERE FOR DETAILS