STATE Minister of Finance for Planning has stated that the recent introduction of Social Media and Mobile Money Taxes will widen Uganda’s revenue base this fiscal year.
David Bahati, addressing Journalists at Uganda Media Centre on Tuesday afternoon says paying taxes by social media users and 1% tax levied on Mobile Money transactions is not a punishment, whatsoever.
Bahati told Ugandans that the purpose of these new taxes is to have citizens contributing to the funding of country’s budget and to enable government fulfill many of her national obligations.
“Government desires to have many Ugandans contributing funds for our budget. We’re trying in all ways to broaden the tax base to facilitate infrastructure development,” he added.
The Minister also noted that when government opted to tax social media, its affordability to users was widely considered and agreed up on by Cabinet.
According to Bahati, all taxes collected from Ugandans will be accounted for by using it on services wanted by her citizens.
“Make your government accountable and we [government] are ready,” he promised.
On 1 July this year, social media users were unable to access Facebook, Twitter, Instagram, WhatsApp, among other social media sites following announcements from Telecom companies and government on new taxes.
Same way, any mobile money transactions is taxed 1% depending on the transaction amount.