Business News

Govt tables bill to repeal OTT payments.

The Minister of Finance, Planning and Economic Development, Honorable Matia Kasaija tabled 12 new tax bills for first reading yesterday before parliament. The bills that were tabled for consideration ahead of the financial year 2021/2022 National Budget also include the Excise Duty (Amendment) Bill that seeks to repeal the payment of Over The Top services (OTT).

In 2018, the government of Uganda passed the Excise Duty Amendment bill that would tax the use of social media at shs200 per day. However on Thursday the Hon. Kasaija proposed to repeal this bill and instead reintroduce excise duty at a rate of 12% on internet data.

‘The proposal for 12% excise duty on internet data (each bundle bought?) ensures the government plugs the VPN loophole that led to non-compliance of the OTT tax’ said Mark Keith Muhumuza, who also believes that the revenue collected from 12% will probable be higher than the revenue previously generated by OTT.

Since the introduction of OTT, the number of Ugandans using social media has fluctuated over the past year wth many opting for VPN services that would allow them to bypass all protocols for social media engagement. The Excise Duty bill that was imposed in 2018 was proposed to generate the government shs 284 billion annually.

Other tax bills that were tabled in parliament for amendment also include: the Appropriation Bill, Value-added Tax Bill, Tax procedures Code, Stamp duty Bill, Income Tax Bill, External Trade Bill, Traffic and road safety Act Bill, Tobacco Control Bill, Tax appeals tribunal Act, Mining Bill, Fish Bill and Excise Duty Bill for the year financial year 2021.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *