Airtime tax to stay

Sep 21, 2005

PARLIAMENT yesterday upheld the tax increase on airtime for cellular mobile phones.

By Joyce Namutebi and John Odyek

PARLIAMENT yesterday upheld the tax increase on airtime for cellular mobile phones.

While reading the budget speech, the Minister of Finance proposed a tax increase of 12% from 10%.

Some MPs, including Steven Bamwanga (Ndorwa West) and Beatrice Kiraso (Kabarole Woman), supported the position by the finance committee to retain the tax at 10%.

State minister for communication Tom Butime and MPs Aggrey Awori (Samia Bugwe North), Gagawala Wambuzi (Bulamogi) and Dr. Okulo Epak (Oyam south) supported state minister of planning, Isaac Musumba to have the tax at 12%.

When the matter was put to vote, Parliament overwhelmingly supported the increase.

Parliament was debating The Excise Tariff (Amendment) Bill, 2005, whose objectives include providing new rates of excise duty to be charged on specific goods and to specify goods on which the duty is to be imposed. They passed the Bill.

Musumba said the Government expected to get sh34b from the airtime tax, needed to finance budgetary pressures.

He said there is pressure to pay primary teachers salary of sh13b, compensation for graduated tax of sh30b, while Parliament requires another sh9b.

(adsbygoogle = window.adsbygoogle || []).push({});