MinBane

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Exercise Duty: Tumwebaze and BoU sends mixed messages, today!

Today, it was striking that the government really hitting a home-run in double messaging. The National Resistance Movement (NRM) started from 1st July 2018 to tax all parts of the transactions with Mobile Money Tax. This is receiving, sending and also uploading the funds. That is why these funds have been tripled taxed with the other taxes that is already put on the transactions like PAYE and VAT.

That is why the Honorable Tumwebaze words seems fitting to post on the Mobile Money Tax, as this is discriminating people and making sure they cannot use the technology or digital way of paying bills and such. However, he don’t want people to resist it. How fitting, when the state have made it to expensive for people to be part of the modern world and have to use old methods to pay their relatives and companies, making sure day to day transactions becomes more costly.

Frank Tumwebaze statement:

Continuous technological advancement will further lead to other digital migrations in the way we conduct business. Let us embrace these technology advancements and not resist. If you resist technology it will disrupt” (New Vision, 2018)

BoU report on the tax after a month:

The 0.5 per cent tax on Mobile Money is discriminative and is likely to affect financial inclusion, officials from Bank of Uganda have said. The officials said this while appearing before the Parliamentary Committee on finance on Wednesday to give their views about mobile money tax. The officials, who also appeared before the committee alongside their counterparts from telecom companies, said mobile money transactions declined by 672bn shillings in the first two weeks of implementing the mobile money tax” (Tusingwire, 2018).

I am not surprised that the Mobile Money Market is hit and hard. Even if one percentage of tax doesn’t sound much. However, when you had put in on all parts of the transaction plus the other added taxes, the total cost of a transaction is huge. It is eating a lot of the plate for the same services, which has been provided for ages. There are already costs of the transactions to the companies, therefore the public have shunned and also stopped using it. Many even felt they couldn’t afford the usage of it.

That was to be expected. However, the Minister Tumwebaze have made the people resist moving to digital migration, move into the modern day transactions of money and such. That with the Exercise Duty, which was enforced two months ago.

The NRM cannot talk of people embracing technology, when they themselves making people resist or to expensive to use. Maybe, they have to figure out better ways of taxing people. If they want to be fair, because now even the National Bank of Bank of Uganda is saying it is discriminating. That should worry the Minister, but he is just using fashionable words. So he clearly don’t care. Peace.

Reference:

Tusingwire, Serestino – ‘Mobile Money tax discriminative – BoU’ 01.08.2018 link: http://www.monitor.co.ug/News/National/Mobile-Money-tax-discriminative-BoU/688334-4692428-137ocmdz/index.html

New Vision – ‘Let us embrace technology advancements’ 01.08.2018 link: https://www.newvision.co.ug/new_vision/news/1482566/us-embrace-technology-advancements

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