By Hannatu Sadiq
Ugandans will begin paying taxes on internet data consumption as from today which marks the beginning of their new fiscal year.
The 12% excise duty on mobile data replaces the infamous “social media tax” – an over-the-top (OTT) services daily tax introduced in 2018 on use of social media.
The new excise duty comes into effect as the new financial year begins.
It was introduced earlier this year through an amendment by parliament.
Although the authority says it will not be charged on mobile data purchased for provision of medical and education services, it is not clear how the distinction will be made.
The opposition politicians led by Robert Kyagulanyi led a protest in July 2018 against the “social media tax” but it was violently dispersed by the security forces.
Many Ugandans found ways to bypass it by using Virtual Private Networks (VPNs).
It was reported that the tax failed to meet the targeted projected revenue. The revenue authority said in July 2019 that it had collected about $14m (£10m) in the 2018-2019 financial year against a projected $80m from the tax.
Ugandans, especially youths who are heavily dependent on the internet for small and medium enterprises continue to decry the taxing of internet use.
