Uganda Parliament has passed controversial taxes on mobile money transaction and social media use amid strong protests from critics.
The new law will impose a mandatory Sh 5 (Ush200) daily levy for WhatsApp users starting July 1, while mobile money transactions will also attract a one per cent levy on the total value of transaction. But debate on tax on social media faced stiff resistance from younger MPs with Kyaddondo East MP Robert Kyaggulanyi, aka Bobi Wine, dismissing it as double taxation. He was supported by Padyere County’s Joshua Anywarach, and Silas Aogon of Kumi Municipality.
The youthful MPs argued that since WhatsApp is accessed through already taxed airtime, another levy would be an infringement on the users’ rights.
But junior Planning minister David Bahati rejected the assertion that government is taxing data or internet, saying it is only the service being taxed. He said with only Sh5 charge per a day, each consistent WhatsApp user will pay only Sh1,900 in one year.
But the Excise Duty (Amendment) Act, 2018, also extends to the kitchen, with cooking oil facing a Sh5 (Ush200) levy per litre.
This pushed more MPs to put up spirited counter arguments against the new taxes, arguing they would break the backs of many Ugandans struggling to make ends meet.
That WhatsApp part ni upuzi and will obviously fail. Maybe M7 let his officials in govt propose and push this idea so that he can rubbish it and look like a hero in the eyes of Wannjikku
Never ever trust a lawyer or a politician. They’re worse than River Road barmaids
Using Deep Packet Inspection, the ISPs can analyse the traffic and block the specific traffic from WhatsApp. They can look for packet types of the voice traffic, or they could look for the negotiations between your phone and the network before the call is made. They might also block specific servers which act as gateways.
Just as an ISP can have their IT Tech block anything they don’t want to go through also, they can block whole countries, areas, or whatever AND Report Snitch to the Govt…
:D:D:D pole Uganda, ata ya Tz ilipita objection kwa court Jana. It wouldn’t happen here.
The real reason why it was passed is that they need that tax desperately. Their Tax collection has remained flat for 4 years barely growing. In those 4 years they took loans for 3 hydro dams to improve connectivity to homes/industry. They also built many roads which is transforming UG rural areas. Lakini getting $2.5 billion from China Exim bank to build SGR UG has been a challenge. They failed the financial package. Unlike us their revenue collection isn’t growing as fast. This tax fills that gap for them to qualify. They will impose this tax on the mobile companies so that If you buy data of I.e 100 you get 95. The rest is mopped up to URA.
