Digital

Reactions: SWIFT phase-out, social media and mobile money taxes kick up dust

Uganda will start taxing users of social media apps like these if President Museveni signs the excise duty bill into law

Telecommunications companies at exactly 12:00am on July 1 started demanding Shs200 for one to access social media platforms daily. They also began implementing the charges on mobile money transactions. To make the situation even harder, they scrapped off the social media bundles, also known as, SWIFT. Whereas the first two were directives by the government, we’re yet to understand why telcos collaborated to phase out data package options that were making access to social media a little cheaper.

When the implementation of the above kicked off, a lot of shocking things emerged, showing how most of these telcos were unprepared to help the government collect the taxes. For instance, the mobile money service which one needs to pay for access to OTTs was inaccessible by many across all the service providers and some are yet to access it.

Secondly, the government had hoped to impose the taxes on people using VPNs but it is still possible to dodge the tax. The government may not really need to boost its IT systems since most people are already finding it hard to sustain VPNs as their data consumption rate is too high.

Related: Tumwebaze calls for dialogue as social media tax ruffles Ugandan feathers

One thing that still casts a ray of hope is a petition that is expected to be filed in the Constitutional Court on Monday to block the social media taxes; if the petitioners don’t secure an injunction to block the taxes, then, Ugandans will have no way out. At least for now.

Below are some of the reactions we picked from the three hashtags — #nodataweek and #SocialMediaTax and #MobileMoneyTax.

https://twitter.com/_mwes/status/1013165858171088896

https://twitter.com/_mwes/status/1013176329490108416

https://twitter.com/BillOpio/status/1012960916256755713

https://twitter.com/Olaraa/status/1013336014088105984

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