adminMs Kiwanuka had to come up with ways to plug a US$214 million hole in the annual budget after donors cut aid over accusations of corruption. There has been criticism that the budget – presented to parliament last Thursday – will hit poorer Ugandans hardest.
Ms Kiwanuka told MPs that in the last year US$767 million worth of remittances had been received from Ugandans in the Diaspora.
According to Uganda’s private Daily Monitor newspaper, the new mobile money transfer tax could affect the 8,9 million customers using six mobile phone networks in Uganda.
The government hopes to raise US$12 million annually from the tax, it reports.
Mobile money transfers are extremely common in Uganda as many people, especially in rural areas, do not have bank accounts. Transfers are used to send money to relatives and even settle some bills.
“It’s very unfortunate that Ugandans are being squeezed both ways,” Simon Mpagi, a mobile phone money transfer agent said.
“They steal our taxes and donor money. . . leaving public services to near-collapse and now when donors get angry and cut them off, they punish us again by raising taxes to grab even the little income we struggle to make.”
Phiona Wall, communications manager at mobile phone company Airtel Uganda, said there were contradictions in the budget. – BBC.
Online Reporter