Government scraps tax on mobile money deposits, says it was passed in error

David Bahati, a member of Uganda's Parliament, is interviewed in 2011. Bahati was the driving force behind a controversial anti-gay bill that was approved Friday.

The State Minister for Planning, David Bahati has revealed that the one percent tax charged when depositing money on Mobile Money will be scrapped off as it was passed in error.

The tax which took effect on Sunday July 1 alongside the Over the Top (OTT) tax that blocks social media platforms until users pay a mandatory Shs200 daily.

Bahati also noted that cabinet resolved that the rest of the new taxes stay urging citizens and adhere and respect them.

“Government expects to earn over Shs100bn from the new OTT tax in the new financial year and this money will help solve a number of infrastructural problems,” he said.

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