Mobile Money Tax shortfall: People change behaviour after levying an unfair tax

Levy on mobile money contributed a deficit of UGX 30.48 billion which can be explained by the fact that high value clients withdraw their funds from agency banking e.g MTN has had a drop of 36 percent in MM transaction values since the introduction of the levy on mobile money” (Uganda Revenue Authority, 06.02.2020).

There is also reported that it has been a 36% drop in Mobile Money Transactions since the enaction of the Exercise Duty in 2018. That means, the added tax on the MM transactions are backfiring. The State isn’t adding revenue, but ensuring that people are finding other ways of moving their money.

This is not shocking, that people change behaviour, when the state makes it more expensive. As the people used these services to send each other money by convenience. Now, one third of the transactions are gone. Meaning, the ones that can change their ways has done that.

The losers are not only the Telecoms, but also the state. As the shortfall of taxes got to be covered elsewhere. As the state had put this into the budgets to cover other state works. This means the targets for domestic revenue wasn’t considering the implications of doing it. As, there wouldn’t be an natural reaction to the consequences to the new taxes.

Instead of increasing the tax base, they are making it smaller and not able to find measures that makes sense. The state has clearly done this without due diligence, neither also configured the stats and the possible behaviour of the public. As their ways gotten more taxed and not considering that they would stop, if they found it to expensive or unreasonable.

The MM tax and the OTT taxes was measures made to tax the digital market-space in the Republic. However, they have both been flawed and also not met their targets, because the public found other ways of doing things.

The ironies about the MM saga is that before the tax, the business of MM was growing. A natural growth and having more transactions every year. Now, that they levied the tax its has a big fall. That is a result of the MM Tax and the public is not having it. Peace.

Burundi: Confereation CSB/Confederation COSYBU – Concerne: Gel des annales, primes et indemnites conjoncturelles (06.02.2020)

South Sudan: Governors Communique (04.02.2020)

Burundi: Mouvement pour la Solidarite et la Democratie (MSD) – Communique (05.02.2020)

African Union: Communiqué of the 905th meeting of the Peace and Security Council on the situation in the Republic of South Sudan, 27 January 2020 (05.02.2020)

Uganda-Rwanda XXII: Final Communique – The Quadripartite Summit between the Heads of State and Government of the Republics of Angola, Uganda, Ruanda and Democratic Republic of Congo (02.02.2020)

Government and donors enable WFP to assist 1.2 million refugees and build local economies in Uganda (31.01.2020)

KAMPALA – The United Nations World Food Programme (WFP) commends the Government of Uganda and all its donors for helping it to contribute to the basic food needs of 1.2 million refugees and their host communities across the country in 2019.

Donors and the Government of Uganda supported WFP to meet the basic dietary needs of refugees through monthly food or cash transfers. In addition, donors funded the treatment and prevention of malnutrition among refugees and Ugandans living around refugee settlements.

WFP was also able to support smallholder farmers to improve their yields and incomes while reducing food losses.

“The partnership between government, donors and WFP is vital to fight hunger and malnutrition in Uganda,” said El-Khidir Daloum, WFP Country Director. “The ability of donors to swiftly provide funding and entrust us to deliver assistance to those seeking refuge —often women and children fleeing unimaginable hardships—needs our heartfelt recognition.”

In 2019, WFP’s refugee operation received contributions from Uganda, Canada, the European Commission, Ireland, Japan, Sweden, the Republic of Korea, the Russian Federation, the United Kingdom, the UN Central Emergency Response Fund and the United States of America.

Donors enabled WFP to help boost economies within Uganda by purchasing food locally. In addition, WFP strengthened its food and cash distribution procedures, including using biometrics to confirm identities in order to improve the accountability and integrity of the refugee response.

The government and donors helped WFP to expand cash-based transfers, reaching 35 percent of all refugees assisted. Cash allows refugees to choose what food they buy and stimulates economic growth in and around settlements. Cash also boosts government efforts to enhance financial inclusion.

Through cash-based transfers, WFP injected US$35 million into refugee settlements in 2019.

At the end of 2019, Uganda hosted 1.38 million refugees— the highest number of refugees in Africa. More than 67,300 refugees arrived from the Democratic Republic of Congo and South Sudan between July and December. Women and people under the age of 18 make up 83 percent of refugees.

They typically arrive in Uganda with little to no assets, leaving them heavily dependent on assistance. A WFP and government study in 2017 found that even while the government gives land and the UN and other organizations provide additional assistance, refugees remain vulnerable for years.

By meeting their basic food and nutrition needs, WFP and its partners enable refugees to begin a journey toward self-reliance and resilience in line with Uganda’s refugee policy.

Donors to WFP’s relief and development work in Uganda to support refugees and host communities in 2019 were: Canada (US$562,000), the European Commission’s Humanitarian Aid and Civil Protection Department (US$16 million), Ireland (US$2.3 million), Japan (US$2 million), the Republic of Korea (US$7 million of oil and rice), Russia (US$1.5 million), Sweden (US$1.7 million), Uganda (US$2.7 million of rice), the United Kingdom (US$56 million), the UN Central Emergency Response Fund (US$3.5 million) and the United States of America (US$110.6 million).

Contributions also came from multilateral (US$2 million) and private donors (US$306,400).

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The United Nations World Food Programme is the world’s largest humanitarian organization, saving lives in emergencies, building prosperity and supporting a sustainable future for people recovering from conflict, disasters and the impact of climate change.

Uganda-Rwanda Tensions XXI: Kagame’s memorable words

President Paul Kagame had a speech yesterday with the Diplomatic Corps in Kigali, Rwanda. This is the most direct his been in a while in concern of the border dispute with Uganda. That has lasted all through 2019 and continues to linger in 2020. The big-men are fighting shadow games and trading blame. While the peasants are hurt in the midst of the battling between. That part never dies in these sort of diplomatic disputes.

What was striking was a few of his remarks. I will not cover the whole speech, but give a few interesting tide-bits of it. Which is deserving a little look into and some social commentary. Because, inside the Republic everyone will eat his every word and to many are paid to do his praises abroad. So, something gotta give, in this case, me.

Here we go:

This is what has happened between Rwanda and Uganda in the recent days. We have had hundreds of Rwandans arrested in Uganda. And we have raised this matter with Ugandan authorities. We have families of hundreds of families coming and appealing to us asking why don’t you ask Uganda to release our people. And that matter has been raised with Uganda repeatedly, several times, by different layers of our administration. I myself travelled there” (Kagame, 29.01.2020).

As that is happening, and I am calling it good progress — forget about the other stories of how they have been mistreated — the other side says, you see we have shown a good gesture. Now you must also do something. We say, what? Something that tells Rwandans to start traveling to Uganda. And I asked one of the officials who came to see me and told me that: I can easily say that, make a statement that you released nine people, everything is okay, you can start going to Uganda. I told this official, suppose I start doing that, and the next day and another day more Rwandans are arrested and those still in custody are not released. Are you suggesting I would go tell these Rwandans, you know what, I was deceived. Again stop going there” (Kagame, 29.01.2020).

What I am being asked to do is say Rwandans can start comfortably going to Uganda. That’s what I am being asked. And I am holding on to that because I am not yet comfortable that I can tell Rwandans to start doing that. That they won’t be arrested and relatives will then come tell me you put our relatives and friends into trouble” (Kagame, 29.01.2020).

These three paragraphs are the most striking in the whole speech in concern with the spat and dispute between Rwanda and Uganda. As the Rwandan President have never been so clear during the whole process. His now totally assaulting the way the Ugandan counterparts are treating the Rwandan citizens on its soil. The President is directly saying the Ugandan authorities are illegally arresting, detaining and selecting Rwandans on the border.

There are evidence of a certain amount of Rwandan captives and arrested people, both in the hands of ESO (External Security Organization), ISO (Internal Security Organization) CMI (Chief of Military Intelligence) and other agencies, both in safe-houses and gazetted facilities. Some have been through the legal system, some are conspiring terrorist and spies, which have been detained by CMI and ESO for those reasons. These cases are usually following other procedures, which should be known to the former Acting Chief of Military Intelligence (CMI) in Uganda and now President of Rwanda. So, if someone knows this game and knows his former ally Museveni. Kagame knows, but instead speak in small riddles.

Kagame knows and has an idea, but trying to act aloof and act innocent in all of this. Like his border patrol and others haven’t done anything of sort. That the Rwandan counterparts haven’t attacked nor shown aggression towards the Ugandan. Which by all counts is hogwash. They have both acted in ill fate, but the Rwandan President trying to clean his dirty hands too. It might work on his propaganda stations, but not with me.

Kagame, you better start talking to Yoweri Kaguta Museveni. Museveni better start talking to you. So, you to can settle your grievances and hurt, maybe even kiss and make-up. Then after that tell each other war stories, which would a moment of nostalgia between the too gentlemen. Peace.

South Sudan: Remembering the Ones We Lost – Press Statement (27.01.2020)

Burundi: OLUCOME – Communique de Presse No. 004 – Portant sur les Avantages Exageres Attribues au President de la Republique du Burundi a la fin de Son Mandat (27.01.2020)