Bank of Uganda officials have described the contoversial mobile money tax as discriminative and likely to affect financial inclusion.
The officials made these remarks on Wednesday while meeting parliament’s finance committee.
According to Bank of Uganda officials, mobile money transactions declined by 672bn shillings in the first two weeks of implementing the mobile money tax.
They are against the new Ministry of Finance proposal of 0.5% tax.
At the meeting, top telecom company, MTN revealed that it’s revenue has declined in the last 4weeks by 30% since the implementation of mobile money tax.
They recommended the withdraw of the tax since there is already 15% Excise Duty and 10% Withholding tax on the same service.
At the start of last month, government imposed a 1% tax on mobile money transactions, drawing protests from the public.
