Skip to main content

Ugandans Defiant to Pay Social Media Tax (OTT) and Only 17% paid it as URA registers Shs 284bn shortfall.





Automated Blog Post.

The Citizens have continued to avoid paying the over the top services (OTT) daily taxes, with Uganda Revenue Authority (URA) collecting a mere Shs 49.5bn out of the projected Shs 284bn in the last financial year. 

Last Year in July 2018, government introduced the Shs 200 daily tax for use of social media platforms such as Facebook, Whatsapp, but the taxbody says they registered a shortfall of 83 per cent as only 17.4 per cent of internet subscribers were able to pay the tax.

URA commissioner general Doris Akol attributes the shortfall to use of Virtual Private Networks (VPN) and wireless networks in their offices and restaurants.


"The story for OTT is very very different, it was targeted at Shs 284bn but we only collected Shs 49.5bn and it performed 17.4% against what was targeted. So OTT did not perform well at all. We think it was affected by use of Wi-fi in internet covered areas and as well as the continued use of VPNs to avoid paying the tax." said Akol.   

Akol says there is a need to study OTT more to see if more taxes can be realized. Interestingly, the people who can afford to pay OTT are the ones avoiding paying the tax - citing government extravagancy, corruption and wastage.

The levy was controversial from the start, and together with one levied on mobile money inspired some youths to take to the streets to demonstrate against the tax. When government refused to withdraw the tax, Ugandans found a way around it – using VPNs. 

Meanwhile, mobile money performed much better, which is an indicator of the services’ unstoppable growth. This is despite the fact that while the government had passed 1 per cent tax on every transaction, it was later reversed to just 0.5 per cent charged on withdrawals. 

According to Akol the collections from mobile money were Shs 157.2 billion far above the Shs 115 billion target. 

"Mobile money performed at 172%, we expected to collect Shs 115bn, we collected Shs 157bn - a surplus of 42%." added Akol.

There are other taxes on mobile money, including the 15 per cent excise duty charged for using the service which was itself increased from 10 per cent charged in the 2017/18 financial year.

Comments

Popular posts from this blog

UGANDA ELECTORAL COMMISSION TO ELIMINATE NATIONAL IDENTIFICATION CARDS (IDs) FOR 2021 GENERAL ELECTIONS.

The elimination of using National IDs (Ndagamuntu) for the 2021 elections should not have come as a surprise. One would be very NAIVE to think that Bobi Wine has not prepared for this in his Business Plan under the RISK section. It is public knowledge that our EC is not independent.  It is also public knowledge that Military Dictator Yoweri Museveni will never lose an election. What stunned us this morning is when we noticed that on social media, people were mocking Bobi with his "get your Ndagamuntu".  We are on record for saying to all Our readers that the National ID is like Apartheid in South Africa. Students of History would know how those IDs were being used to arrest people, deny them jobs, deny them basic services. Consequently, Bobi was not wrong and will never be wrong on the Ndagamuntu. Except the ones attacking him and mocking him forget that in Uganda, now, no National ID (Ndagamuntu), no service.  If you have not been denied registering your child i...

Here is Why Our Utterances For Praying Jesus And God To Come Liberate Ugandans, May Be Misplaced. This Phrase is like inform of a Letter To Some Categorized Section Of Ugandans.

https://m.facebook.com/yusufosuta/photos/a.1896701010557789/2070383359856219/?type=3 OPEN LETTER TO NRM SUPPORTERS - NATIONAL ROBBERS MOVEMENT. .................................................................................. Last week of March, a friend told me to pray for Uganda.  I told him that he was an Idiot and we have prayed for too long and we are still hungry and sick and Jesus is not coming soon to liberate us. He then ignored the STUPID and sent me a picture we all now know.  It got me totally messed up.  This guy was telling me to pray then sends a picture of men bowing down in blood.  He might have meant guns but I blocked him because his utterances of praying for Uganda were misplaced. I unblocked him 3 weeks later and asked him about praying and assassinations.  His reply "eithrr prayers or guns or both". I hate violence with a passion.  So he is now blocked in like FOREVER. Do you feel safe?  Do not feel safe. Uganda regim...

The Full List of Permanent Secretaries Appointed by President Museveni.

By virtue of the Powers given to the President by Article 174 (2) of the 1995 Constitution of the Republic of Uganda, I hereby, appoint the following as Permanent Secretaries as indicated below: 1. Head of Public Service and Secretary to Cabinet- Lucy Nakyobe 2. Deputy Head of Public Service And Secretary to Cabinet - Deborah Katuramu 3. State House Comptroller - Jane Barekye 4. Principal Private Secretary to the President- Dr. Kenneth Omona 5. Principal Private Secretary to H.E. the Vice President - Alex Kakooza 6.  Office of the Prime Minister - Keith Muhakanizi 7.  Office of the President - Yunus Kakande 8.  Ministry of Agriculture, Animal - Industry and Fisheries David Kyomukama Kasura (Maj. Gen.) 9.  Ministry of Defence and Veteran Affairs- Rosette Byengoma 10. Ministry of Education and Sports -       Kate Lamaro  11. Ministry of Energy and Mineral Development -   Batebe Irene  12. Ministry of Foreign Affairs - Vincent Bag...