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

We Bring You Brief Series of Sanctions Against Uganda Government Officials.

📸: Gen Abel Kandiho. On 9-December-2021, USA slapped sanctions against the then CMI Commander Gen Abel Kandiho. 📸: Gen Kale Kayihura. On 9-December-2022, UK slapped sanctions against former Police Boss Gen Kale Kayihura. 📸: Commissioner General of Prisons, Johnson Byabashaija. Again on this 4-December-2023, the same USA has slapped sanctions against Uganda Prisons Commander Johnson Byabashaija over alleged torture and human rights abuses in Prisons across Uganda. We ask, has USA and UK made December as an LCM to slap sanctions against high ranking government officials in Uganda even when the sanctions just remain on paper without deeper investigations to ascertain logical conclusions or remedy to that effect ?. #iip_updates  #Information_is_Power  #we_inform_the_uninformed

How to Host a Website for Free From Your PC or Laptop.

Why pay for a web hosting service when your old computer can do the same thing? Learn how to self-host your site. If you're planning to launch a website but don't want to pay recurring monthly or annual hosting fees, you can use any old laptop or desktop PC to host a website for free. It's a great way to utilize your old system instead of throwing it away. In this guide, we will install and set up services on our 10-year-old laptop to host a WordPress, Joomla, or custom HTML or PHP-based website with a free SSL certificate. MAKEUSEOF VIDEO OF THE DAY Things You Will Need to Host a Website Following are the pre-requisites to host a website for free from home with just your computer: An old laptop or PC running Ubuntu Server. A registered domain name for your website Ethernet cable to connect the laptop or PC to router for reliable and fast connection Step 1: Update and Upgrade the Packages After  installing Ubuntu Server on your computer , execute the following c...

WHERE IS MINISTER OF SEX SIMON LOKODO?. (He deserves a battle of soda from me! Ministe`r esalanga mabee. He is quick to run after Mrs Dr Stella Nyanzi and other Opposition elements. Government aza aza edo zuu vaa kpere bua). Anyway, below is the article! POLICE OFFICER AKOL ESTHER CHARGED OF BEING A PUBLIC NUISANCE Naughty Officer Officer who embarrassed police after leaking nude photo charged 13.03.2018 She serves in the 'Very Important Persons Protection Unit'  Akol Esther  (Courtesy) A female police officer whose nude photo surfaced on social media has been charged of being a public nuisance. Akol Esther serves in the Very Important Persons Protection Unit (VIPPU) of the police force. Kampala Metropolitan Police spokesperson Luke Owoyesigire says Akol Esther might be demoted or expelled from the police force if found guilty of circulating nude photos. Police court is yet to announce date when Akol Esther is expected to appear for a hearing. This comes at a time when Pornography Control Committee is taking tough measures against persons circulating pornography content. The committee warned and promised to arrest persons who will circulate pornographic content.

POLICE OFFICER AKOL ESTHER CHARGED OF BEING A PUBLIC NUISANCE Naughty Officer Officer who embarrassed police after leaking nude photo charged 13.03.2018 She serves in the 'Very Important Persons Protection Unit' Akol Esther  (Courtesy) A female police officer whose nude photo surfaced on social media has been charged of being a public nuisance. Akol Esther serves in the Very Important Persons Protection Unit (VIPPU) of the police force. Kampala Metropolitan Police spokesperson Luke Owoyesigire says  Akol Esther might be demoted or expelled from the police force if found guilty of circulating nude photos . Police court is yet to announce date when Akol Esther is expected to appear for a hearing. This comes at a time when Pornography Control Committee is taking tough measures against persons circulating pornography content. The committee warned and promised to arrest persons who will circulate pornographic content.