Telecom companies start refunding illegal mobile money tax charges
All taxes charged on mobile money deposits are now refunded back to all rightful subscribers
The Uganda Revenue Authority (URA) for the past few weeks expected some huge chunks of money from telecommunication companies over Government’s new 1% on mobile money tax following strong opposition from the payers.
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.