Social Media Tax: The Breakdown of the Key Statements from the Hansard of 30th May 2018!

Joshua Anywarach:

Mr Speaker, for heaven’s sake, anywhere in the world – if anything can be cheaper and spur economic development, it is communication (Hansard, 30.05.2018).

This is weird, but not surprising, it is striking that these quotes has not been in the spotlight more. As the Exercise Duty, which was passed on the 30th May 2018. This after just two barely months of digging into the costs, added revenue and even making it possible. This was a hasted taxes of the public. Where the added costs was not put in perspective. There was talk about the poor and the regions without banks, but not like the National Resistance Movement (NRM) cares, because you don’t have to use Mobile Money, you can send the money by donkeys for free. However, the Western Union isn’t having the donkey express anymore, even the NRM will go back-to-future with these taxes. Making sure the Social Media is silenced and costing even more for people to be involved online.

Silas Aogon, who was against said this:

Mr Chairperson, without the bundles that we buy, we cannot access WhatsApp. I know that very well. You have got to have mobile money and then you can use it to buy Megabytes (MBs) before you can access WhatsApp. How do you tax what has already been taxed? That is the issue. If you doubt what we are saying, let us then do some practicals here and then you will see” (Hansard, 30.05.2018).

That is just barely the ones speaking against Social Media Tax before the passing of the bill. However, there was more NRM MPs, who was defending it. These should be remembered, because they are silencing the poorest, because of revenue and because of their reckless spending on themselves. They added perks and salaries, are paid by the hardships of people, who will be doubled taxed, not only on airtime and data-bundles, but now for using social media too. This because the state doesn’t care.

James Kakooza said:

This tax is optional; if you want you pay, if you don’t want you don’t pay. (Applause) That is what is under the law. That is the information I wanted to give” (Hansard, 30.05.2018).

It maybe partly optional, but people are used to WhatsApp, Facebook and other Apps for communications. Therefore, it isn’t that optional, except for the ones who are advanced age, like the President himself. Maybe Kakooza should delete his social media profiles and try to be optional outside of the online world.

David Bhati said:

If you are using WhatsApp or Viber, the Shs 200 which we are proposing here will actually translate to Shs 70,000 per year. That is what we are talking about. It is Shs 70,000 the entire year –(Interjections)– You are making a contribution of Shs 70,000 for the whole year; can you imagine! It is as simple as that” (Hansard, 30.05.2018).

It isn’t like your jumping in once and never again. Its very few who just are one day inside a social network or part of group talking on WhatsApp or Viber. They are there daily, because if your wanting to get information or be in communications with friends. You do it daily. Therefore, if your part of social interactions online, this is really just making sure the youths, ordinary people are taxed for interacting online. Soon, Bhati will send birds with messages and I am not talking Twitter. I am awaiting that. Since he can choose that without paying tax himself.

Robert Kasule Sebunya said:

We have a dilemma as technology is changing every day. People are no longer using the normal calls that Government has been taxing. Excise duty of 12 per cent has been paid per normal call. Now because technology is turning into voice messaging, WhatsApp calls and others, we are losing revenue. Even institutions are losing money on normal calls because people are changing as technology changes” (Hansard, 30.05.2018).

That the public has decided to call through the data-bundles are still taxed VAT and Income Tax, the Telecommunication Companies are taxed and so is the income of the agents selling the airtime and the data-bundles. Therefore, if anyone would call on WhatsApp or Viber, they are already paying tax. Now they just have a second wall of payment and securing the state, both for the nut and bolt, but also using the tool itself. So, he defends double taxation. Kudos!

Otto Odonga said:

I did economics at the university, mind you. (Laughter) WhatsApp, Viber, Facebook are ostentatious commodities. They are almost like perfume. The ordinary man in the village can do without it. (Applause) We are looking for a certain category of people who do not mind about the Shs 200. Personally, I do not mind because I need WhatsApp. It is a tax, which is targeting the elites – those who are ostentatious. It does not affect the ordinary man in Pader. That is the information I wanted to give” (Hansard, 30.05.2018).

You have so ancient relics, someone who is falling behind in times. I hope Mr. Otto is not on any Social Media, because his defense is a disgrace in 2018. That it is an extra service. It is true it is not like water and food, or even basic education. However, this is the way people communicate and have moved forwards too. That is why activists have groups on WhatsApp and Facebook, it is like the MP thinks it is only for Kololo and other high-rising neighborhoods in and around Kampala.

This is the look over the Hansard from 30th May 2018. That shows how some of the MPs thinks, this was only about the Social Media Tax, not the Mobile Money Tax or the Cooking Oil. Hope someone else dig into that. That would also deserve criticisms. Because the NRM is really using all tactics to defend the need for revenue, without seeing how they are misusing funds and also the grand-corruption that these funds are going too. Peace.

Opinion: The 200 Shillings of Doom!

There are many things to question in this day and age, especially on the day that Mobile Money Tax and Social Media Tax comes into affect. This is affecting a nation, a Republic and the people will feel this on their body. The costs of usage on the phones will sky-rocket, if not the usage of VPN will grow into huge proportions, like it did in the Social Media Blockage of 2016. When the state had to refund the Cellphone Companies and Mobile Money Networks for the closure during the final days of the General Elections in 2016. Those where the days for the National Resistance Movement (NRM). That is why they are trying to reinforce those and see if the people remember that.

The NRM have really brought the hen before the eggs. They have ushered in taxes, which haven’t been studied, neither proven any numbers of the supposed revenue. Never told or explained the public how these would be used or where the revenue is going. If these are going straight into a Presidential Handshake or another Presidential Jet. Who knows, but certainly not going to fix the schools of Iganga or Amuriat, no one would believe that at this point.

We know that the Godfrey Mutabazi the chairman of Uganda Communication Commission is working on the closure of the VPN services. That is to be expected, anyone to stop paying the taxes will be stopped, as the triggering of changes of IP Addresses will be illegal. No one shall be able to cross passed the taxed wall made by the NRM. This revenue is to important for the Republic. They need these funds to fund the SUVs, the raised salaries of the MPs and the other perks given to them. As well as the bloated budgets and travels of the President. He can spend money and borrow foreign cash like there is no tomorrow. While the poor is taxed more and more, to levels that stupid. Where every single piece of cash is going into tax and barely minimum will go back into the market. Meaning, the lack of power to buy anything will hit the market even more. They cannot afford to do anything, if they still want to be parts of society and in the digital age.

This is really a disgrace, but what sort of place Museveni is creating with his taxation of the OTT and the Telecommunication businesses. He is attacking the Social Media and the public discourse, by taxing it away from people, because many cannot afford or goes broke doing so. It is amazing how little of this has been put into discourse, haven’t even seen it in the editors comments on the online papers. None, or very little.

The President has with this and with his letter in March to the Finance Minister done a heist. A public heist, he is now altering the poorest people away from the Mobile Money, also making them find ways to not pay Social Media Taxes, plus the other fees that are with the usage, since the companies are already earning fortunes on the spending of the public. Not like MTN, Airtel or anyone else is loosing money on the public use of cellphones. They were already getting fees for the transactions and also the fees on the data-bundles and airtime. Therefore, the industry was taxed on the usage, but now the double tax is in effect. Because Museveni doesn’t care about his people.

That is why this is happening, 200 shillings of doom. The drones and clones, the phones are so taxed to maxed, that it is to fax and doing jumping jacks. Not buy e-books, but paperbacks. Peace.

Social Media Tax: Taxes directly on Cellphone services is now a reality!

The Social Media Tax and the Over The Top Taxes, this meaning all the services on the Social Media cost 200,- shillings per day, which means 6000 shillings a month and also 1 % on each transaction by the Mobile Money Transfer. This have been messaged by the government and by the Telecommunication Companies. We even know that by yesterday, the MTN sent messages to their costumers stopping the possibility of their lowest data-bundle. Which cost 250, shillings. Because the least cost now with added tax must be 400,- shillings or so. Since they have to add in the new tax and the usage itself.

That means that the data-bundle will be more expensive now and people have to buy bigger. Because the state will sooner or later see the ones using VPN or other methods of tricking the IP addresses and whatnot. Since, not everyone can afford this. They are shielding the poor people from paying the new taxes and using the services. Over time the voices on social media will go down, even the lack of transactions through the Mobile Money Networks. That is ironic, as the state has tried to push this up-country and even in Northern Uganda. Where there are lack of ATMs and even Bank Offices. Therefore, the attack and add of taxes on these services will just be new add of hardships for plenty.

Clearly, there are many who has complied, who has paid the direct 200 shillings for the social media tax, if you paid that with mobile money, you would pay another 1 % of the transaction fee of 2 shillings on the Mobile Money. That means the total tax is 202 shillings. That before you start using the cellphone or any of the other services on the phones.

This is really insulting to the poor and the low-level employees, whose salary is down to 21,000 shillings or close to 31,000 shillings a months. That means that with the 6000 shillings each month, they would spend ruffly close to 9,7000 on the lowest data-bundle and Air-Time package. This is through Twaweza published on the 7th June 2018. Meaning the lowest salary is close to half and one third of the second lowest level of public salaries. This being U8 Local Government Employee and U7 Primary School Teachers, whose being hit hard. That not being random hawkers or unemployed who are living from hand-to-mouth. They cannot even see the Social Media already as it is, and will be shut out of the public conversation online. This is really making sure the elite are online, while the rest barely get to be a part of the discussion online.

This is really assaulting free-speech and the ability for the poor to be part of the conversation and be part of social media interactions, as well as usage of the Mobile Money transactions. Since all of this is adding costs and making sure the data-bundles and Air-Time will be more costly.

That the Members of Parliament voted and accepted this after the President wrote a letter to the Finance Minister on “social gossip” online and wanted to tax the OTT Service in 12th March 2018 and on 30th May 2018 voted in Parliament. That is how the Excise Duty was levied on the public. While it is starting today on the 1st July 2018. That means, the proposed taxes of April 2018 and put into affect now. Therefore, the public should have known about it. There are other new taxes, which is not on the cellphone, but that deserves to be taken separately.

What is weird about it all, the Twaweza study of the numbers was more vital for the ordinary person, than the Parliament report, which was focused on added revenue, not expressing how it would hit the public. Which for me is weird, as the MPs are supposed to work for the public and serve them. Not just add taxes. Peace.

Uganda – Public Notice: OTT Tax (29.06.2018)

More Musevenisms as the cronyism is real!

Danger, danger, be alert, this here will be sinful text. As the sins of the minds and spirit is shown again and again. By the same system and the same lord, nothing is changing only the names on the boards and on the appointments, but the same insignificant attributes continues. President Yoweri Kaguta Museveni has during the last appointed and re-appointed twice Residential District Commanders, he has also redirected appointments directly at Makerere University and to top it off, he has sacked and re-appointed a Executive Director and board for Uganda Investment Authority (UIA). All of these within days.

What is striking is how the State House is all involved in these matters, how connected the actions of the President and his will is the main factor in the decision made by the state. The government is de facto the President, we all knew this, but with the RDCs, UIA and Makerere, the Ministers and the Ministries, the experts and whatnot’s all have to wait for the blessing from Museveni.

It isn’t weird things are going slow, as the rubber-stamping son-of-a-gun in Entebbe has to deliver the verdict and put his seal on the matter, as he has to validate and secure every single appointment, even the janitors are surely hand-picked by the President. This is the proof of cronyism if there ever is one. The way he has to single-handedly decide and give people merits. After a month of speculation and a claim from Hon. Evelyn Anite that the Executive Director of UIA was corrupt and now the President has re-appointed someone else, while the former ED is challenging the merits of the case. It is really astonishing.

Just like the one day, a new batch of appointments and redeployment of RDCs came about, a day later revealed that some had been dead, one all the way back to 2014. Therefore, kind of hard to be a RDC when your deceased. That is why, on the 15th June 2018 the new list came into circulation and people started to speculate. However, by 24th June 2018, the RDCs fraternity had to be calm down await new orders, as the list was changed and by 25th June 2018, Uganda Media Centre had to write similar to calm it down. It just shows the madness in system and the erratic behaviour has consequences on the ground.

Jolly Kaguhangire, the now former ED of UIA is the crown-example of cronyism in the time of Museveni. The relative of the First Lady Janet Museveni. Who has been the ED since 2017 and now fired in mid-2018. Certainly, the stand-off, the whistleblower to the IGG and the whole farce will continue and persist as the family squabble will hit the headlines. There aren’t anything, which that will stop that at this point. The UIA is used as pawn in a game and the reality is that the Musevenism is the end-game.

This here will not end with the squabble between the board of directors, neither the IGG or even the Minister Anite who has used her role as the one with oversight to look into the activity of the UIA. But this will end with either ruthless activity, re-appointment or even being posted somewhere else, the ED of UIA is a family member, she will in the end be shielded. However, this shows why the family sagas and the interference are dropping the level of integrity and transparency, as they are obliged to be in-charge. Not on merits or skills, but because of their entitlement to the first family.

This is cronyism at its worst, where the ones either in family or loyal to the President get favours, either as RDCs or as Executive Director of some sort of government Authority. It is just a play of games with the taxpayers, with the citizens and the ones hurt is the innocent, while the elites created by the President continues to merge and surge. There isn’t anything that they will not do to get the cash-in-full. Peace.

Uganda: Public Notice of Proposed Taxes on Telecommunication Services (27.06.2018)

Uganda Media Centre: Press Release on RDCs (25.06.2018)

Uganda: Office of the President – Press Release concerning RDCs Fraternity (24.06.2018)

Another look into the Mobile Money Tax!

Yet again, more things are revealing the dire consequences of the new Exercise Duty tax that the Parliament voted through. This time it shows the significant amount of money that is already exchanged through the Mobile Money, as this is the sole way of transferring it without having bank-accounts or being involved with banking sector in general. This is made for the ones who doesn’t have a local bank and needs to transfer money to relatives, friends or even to pay-off bills through the phone. Therefore, these services are vital.

This is numbers taken from the Bank of Uganda, in their fresh Annual Supervision Report. Where the rates and usage nation-wide is presented. It shows significance. Also, the massive amount of taxation it really is.

“Mobile money services

As at end-December 2017, there were seven mobile money service providers and these included; MTN, Airtel, Uganda Telecom, Africell, M-Cash, EzeeMoney and Micropay. The number of registered customers across the networks increased by 8.4 percent, from 21.6 million as at December 2016 to 23.4 million as at December 2017. Mobile money activity continued its growth, during 2017. Transaction values increased by 44.0 percent to USh.63.1 trillion in 2017, up from USh.43.8 trillion recorded in 2016. The number of transactions rose by 23.8 percent over the same period” (Annual Supervision Report December 2017 | Bank Of Uganda).

Because if the whole you of 2017, the total mass of funds transferring through Mobile Money are on the levels of 63 trillion shillings, that means that if this was taxed with the new Exercise Duties, it would be about 630 billion shillings in direct taxes on the money. That is because the new tax is 1% on every transaction. That means that the total value being delivered from one to another is slimmer, as the one percentage of the transmitted funds will be collected as direct tax. That means if someone is sending a 1000 shillings somewhere, that means 10 shillings are directly taxed and leaves behind 990 shillings to the ones receiving it. There are also other taxes, but on this alone, there is certain amounts to be eaten by the state.

If this amount of tax doesn’t stop the growth nothing will. This is sort of amount will stop the amounts, maybe even people will send less times than before. Because they have to consider the added taxes on every single transaction. They want to make sure their money goes where it is supposed to and not give a too big of a slice to the government for the usage of the mobile money services.

Clearly, the state has hit a growing industry, but instead of making it increase, these sort of measures make it decrease and the cost will be carried by the consumers and not by the banks. They are still amassing in profits and taking their costs for the services as it is. Not like the consumer is transferring the money for free. They are not in it for charity, but for profits.

So just think about the massive cost it will be with the transactions and the lack of consideration the state had when they voted it through parliament with lack of due diligence. It wasn’t only the expensive social media tax, but it is this on top of it. To earn revenue on the hard earn cash that people are transferring through their phones. Peace.

2 Weeks 2 Go: Let’s add a Supplementary Schedule No. 3 for the Financial Year 2017/18!

Today, the Parliament approved a Supplementary Schedule No. 3. for the Financial Year of 2017/2018, which is ending in eleven days or 30th June. That means the Parliament approved a new added funds to needed government expenditure and spending between 19th June to 30th June 2018. This means this funds that are approved are supposed to cover until the Financial Year of 2018/2019. That budget wasn’t approved long ago either. Therefore, it is hard to take this sort of business serious.

That the Parliament has accepted a third supplementary schedule for covering expenses until the next Financial Year. This was accepting 377bn shillings or $ 97m United States Dollars. If you shouldn’t question this, then you shouldn’t question anything the state does. Because this is really questionable activity.

How come the need of these amounts of money? Why wasn’t this covered on the Supplementary Schedule No. 2 for the Financial Year? Because if the Ministry of Defense and others who needs the added funds was serious. They would have covered this and made sure to have the funds. This is making the daily supplement 34 billion shillings for whatever purpose they professed. But it is fishy this late to add. Especially this big amount of money. Are they trying to cover the expenses for the recent by-elections?

It is hard to believe the necessity, unless they have trouble with the water at the State House. Needs more Presidential Handshakes and secure other private deals of the President. Because they need to cover 34 billion shillings each day. That should boggle your mind.

This is on top of the 1.3 trillion shillings that was put in the budget. Meaning the 1.3 billion shillings wasn’t enough. They we’re not able to plan the spend of defense in the FY 2017/18. Does that mean the recently established Budget for Financial Year of 2018/19 needs to billions too? Because the state didn’t have the capacity to plan or reconfigure the spending of other sectors?

This means the state needs the 1,677 billion shillings on the Defense in this Financial Year. That should also show how much of the state spends on this.

But I feel I am naive if these Number 3 funds getting used for food and other needed equipment for the military. Would be less shocked if it went to a By-Election or even bill collectors, that are knocking on the State House doors. Since they have been waiting for their invoice to be accepted and get a payout on the outstanding debt of the state towards them.

This here is just weird adding a supplementary funds just mere two weeks before the Financial Year end. That would be like adding more funds for Christmas Bonus just mere last Sunday before Christmas Eve. That is what they are doing. It is weird and cannot stop saying it. Peace.