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Archive for the tag “Norah Bigirwa”

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

NRM Caucus Reportedly Plans to revise Exercise Duty tomorrow on Mobile Money, but not on Social Media!

Earlier in the day suddenly without any forewarning, the Deputy Speaker Jacob Oulanyah sent at the message of postponement of the plenary session from today the 18th July 2018 unto the 19th July 2018. This was not expected, but the 10th Parliament haven’t been business as usual.

The reason came later, as the National Resistance Movement (NRM) Caucus suddenly was summoned to the State House today. This is all of the NRM Members of Parliament, which means the majority of the parliament. As the oppositions and independents are a minority. All of these MPs spent the whole day at the State House. Surely, they we’re made sure to follow the President line on the matter.

This was a meeting on the revision of the newly Exercise Duty, which was put into effect on the 1st July 2018. NTV Uganda reported: “Its expected that the caucus will support the cabinet decision of 0.5% tax on withdrawals, the same position they will support on the floor of parliament” (NTV Uganda, 18.07.2018). NBS TV reported: “According to the Government Chief Whip Ruth Nankabirwa, the meeting is intended to reconcile the caucus position on the two taxes. However, some of the NRM legislators who voted against the age limit bill have been blocked from attending the meeting” (NBS Television, 18.07.2018).

The ones not allowed to attend with his royal highness, as they have already proven dissenting voices last year, are these NRM MPs: James Acidiri, Monica Amoding, Norah Bigirwa, Johnson Muyanja Senyonga, Everlyn Chemutai, Hellen Kahunde, Justine Khainza, Gaffa Mbwatekamwa and Henry Kibalya. So these we’re barred from entering the NRM Caucus today. That proves the ironies of the NRM.

The Resistance Movement, has issues with rebels, even as the Movement was forged out of a rebellion. The 1986s of the world is a rare breed. Musevenism must be the most head-up-in-the-ass and lack of soul-searching.

So, if these people doesn’t follow party line tomorrow, everyone should understand. Therefore, the expectation is that the NRM are voting for only one of the third taxes on the Mobile Money. That being only 0,5% on Withdrawal, take away the 1% on receiving, transactions and withdrawals, which it is today. However, there is no change with the Social Media Tax or the OTT Tax of 200 shillings per day. The NRM has no plan of scratching that, they just want to weaken the blow on the consumer and users of the transactions of the money through the Mobile Service.

We can really see, how foolish the NRM Party have become and they all have to bow down for the majesty at the State House. Museveni have to get them in accord.

If the NRM things this was a smooth way… they are wrong, if the NRM things this a way of proving force; They are all wrong. The NRM deserves no credit, they pursuit the taxes on demand by the majesty, they levied it and didn’t due diligence on the taxes either. They we’re just following the possible revenue streams without thinking consequences. The NRM will sell this as a victory, but really it is poor performance. From a ruling regime and ruling party, that is rotten to its core.

If there was any party understanding rebels, this is one of them and they don’t, they are just blindly following Museveni and doing it without consideration of the implications doing so. It makes them look foolish. Peace.

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