In a sudden change of position, government has agreed to review a tax on the use of social media.
Prime minister Dr. Ruhakana Rugunda issued a statement to parliament outlining the new way forward. The statement comes on the heels of civil and political protests against the controversial measure.
Government listens
Rugunda told parliament that President Museveni had “encouraged further discussion” on the fiercely-contested levy.
“Government is now reviewing the taxes taking into consideration the concerns of the public” and an amended bill will be debated on July 19, said Rugunda.
Since the start of July, access to media such as WhatsApp, Facebook and Twitter, as well as dating sites Tinder and Grindr, have been blocked unless users pay a 200-shilling daily tax.
Museveni makes U-turn
President Museveni last week had defended the move, saying many citizens did not pay their taxes as they ought to, and should not “donate money to foreign companies through chatting or even lying” on social media.
However, implementation has proved patchy and some blocked services are still available.
Some sites have turned to virtual private networks (VPNs) to disguise their location and avoid the levy, a trick learned during elections two years ago when the government tried to shut down social media.
Protests put pressure
Kyadondo East MP and Popular singer Bobi Wine, real name Robert Kyagulanyi, whose election last year was fuelled by social media, has led the chorus of complaints against the tax.
He together with other social media activists including Investigative journalist Raymond Mujuni, Joel Ssenyonyi, artistes A-Pass helped organise a peaceful rally on Wednesday, in which scores of people turned out defiantly dressed in red, a colour synonymous with protests against lifting the presidential age limit last year.
As cracks from police guns echoed around the tightly packed buildings of central Kampala, bystanders rushed to angrily confront the police and shout their support for Bobi Wine.
Police attempted to arrest Wine, but his supporters successfully defended him and he arrived at parliament.
“We set out to show our displeasure at the social media and mobile money taxes. We had informed the police of our intention to march and so we are dismayed at the use of brute force and live ammunition to break up a peaceful protest,” said television journalist Raymond Mujuni.
Below, we reproduce full statement from Ruhakana Rugunda.
STATEMENT TO PARLIAMENT BY THE RT.HON PRIME MINISTER ON THE RECENTLY INTRODUCED TAXES ON MOBILE MONFT TRANSACTIONS AND OVER THE TOP SERVTCES (OTT)
Rt.Hon. Speaker I present this statement under rule 5l (1) of our rules of procedure. Rt.Hon. Speaker and Hon.Colleagues, as you are all aware; there has been a lot of public discussion about the recently introduced taxes on Mobile Money transactions and over the Top Services (OTT) commonly known as social media.
Rt.Hon. Speaker and Hon. Colleagues, the Excise Duty (Amendment) Bill 2018 was presented to this August House, debated and passed by this Parliament. lt was subsequently assented to by His Excellency the President and consequently became an Act of Parliament. The Act imposes a Levy on receiving, payments and withdraws through mobile money platforms. ln addition, it imposes a specific charge of Uganda Shillings Ugshs 200 on over the top (OTT) services per day of access.
Rt.Hon.Speaker and Hon.Colleagues, since the Act came since the Act came into force on lst July 2ol8; Government has noted public concerns regarding some of the elements in implementation of especially tax on mobile money transactions and OTT.
H.E. the President has provided guidance on the matter and encouraged further discussion with a view to reaching consensus on how we should raise the much-needed revenue to finance our budget and undertake the development agenda we have set for ourselves without causing unbearable burden to the citizens.
Rt.Hon. Speaker and Hon. Colleagues, Government is now reviewing the taxes taking into consideration the concerns of the public and its implications on the budget.
The review is being expedited to ensure that Government presents an Amendment of the Excise Duty (Amendment) Act 2Ol8 to this House for debate on Thursday next week (July 2018).Hon. Members will, therefore, have the opportunity to debate and consult widely so as to make an appropriate decision during the consideration and debate of the Amendment Bill.
Rt Hon. Speaker and Hon Colleagues, I would like to assure Parliament that Government is committed to ensuring that tax on mobile money and OTT are designed taking into account the public concerns and balancing the need to raise revenue to finance our development priorities.
