MPs decampaign taxation on mobile money

MOBILE MONEY TAX

KAMPALA - Legislators on the Parliamentary Forum of Public Finance Management and Greater North parliamentary forum have embarked on a campaign to collect 320 signatures.

They are aimed at rejecting the 1% transaction value tax proposal on mobile money for the financial year 2018/2019 by Government earlier this year.

During a press briefing at parliament on Wednesday, the chairperson of the forum Roland Mugume said that out of the 320, they have got 115 signatures and they intend to petition the speaker after getting all the 320.

Mbwatekamwa Gafafa Ksambya County MP said the campaign is not against Government's intension to widen the tax base.

"We are against the tax that digs deep into the poor man's pockets, as well as the vulnerable people. If possible, only tax people who are capable," he said.

 

A man carrying out a money transaction at one of the mobile money shops. (File photo)

He noted that most payments are electronic, citing utility bills and school fees, as he urgued Government to support E-payments.

"E-payments help Government to easily track the taxes. There is no way you can defraud Government using this kind of payments," he said.

He also added that mobile money tax will discourage saving.

Mbwatekamwa added that it will render many unemployed among people dealing in mobile money.

Mbwatekamwa suggested that instead of the 1% on the deposits and withdraw of mobile money, Government should increase exercise duty on receiving from 10 to 17.5 % only on withdrawal and not on sending and depositing.