Effective Sartuday 17th November 2018, Mobile money tax will be charged as a 0.5% round off, as per the statements from top telecom operators. However, what does this mean to an ordinary customer who may have lost alot in the 1% dilemma? Will lead telcos step up with refunds as the story was in August this year?

In a publicized notice by MTN Uganda, the 0.5% tax has already taken effect to all customers subscribing to the Bosco hyped service. In addition, Airtel money also altered its mobile money tax frame as Africell money also joined the overall wagon for a better slot in the mobile money trends.

During the atrocious voting day following the public outcry concerning the seemingly unfair mobile money taxes in October, 164 MPs voted by roll-call and tally to support the tax, while 124 voted against the controversial tax that had been slashed to 0.5% by President Museveni.

4 months down the road since the July 1st tax was welcomed to the 2018/19 budget, mobile money customers have only wondered whether the tax is simply a road block to digital banking or a pending parliament policy. More so, the 0.5% tax dream has never come true as it’s a nightmare which visited the press for less than a month before countrywide silence about when the bill will come to life. This has brought up some controversy for the implementors also at loggerheads with themselves because of the confusion that has since come in due to the failed targets reach.

The current state of the 0.5% tax bill

While President Museveni in July managed to make it a point to inform the general public that the tax levied was not 1% but 0.5% and that it would be altered immediately. Telecoms like MTN and Airtel went ahead to process refunds a few days later in reply to the directive.

A wide percentage of mobile money users weren’t bothered or notified by the refund policy from telcos. But instead still wonder when the tax will be amended fully or scrapped off the ladder. However, during a recent parliamentary sitting State minister for Finance David Bahati revealed that this whole saga will be soon history after the 0.5% bill is scrutinized through all relevant authorities. Nonetheless, what do you think about the whole mobile money tax dilemma that is followed by OTT tax with a sharper sword?

As the distinct groom for change continues to overwhelmingly take over the policymakers. The president further stated a refund of illegal 1% taxes collected in favor of 0.5% only on account transactions excluding agent and bank deposits. Well, Telecommunication companies have flagged off the mobile money refunds drive with a headstart from Airtel Uganda followed by MTN that also issued refunds earlier today.

With the Tax on deposits norm: Airtel and MTN at the weekend started to refund tax deductions that had been charged on a number of mobile money deposits since the beginning of July. The money is being refunded directly to telephone numbers that could have been charged during the period with focus to deposits and the 1% sub-charges.

The progress of Telecom mobile money refunds

At the beginning of July, the ministry of finance stated that 1% tax will be charged on all mobile money transactions. However, as the president went ahead to alter the proceedings of the 2018/19 budget day. Only deposit charges have been refunded so far with no details of when the original 1% on other transactions will flag off with huge cashbacks to customers.