Government of Uganda has amended the Excise Duty Bill and introduced a 0.5% tax on the mobile money transaction value. From 17th November 2018, service providers have been mandated to apply it to Withdrawals only.
On Withdrawal – To get 200,000 Ugx in cash, the agents withdraw 200,000 Ugx on my wallet, but UGX 204,575 is withdrawn : 200,000 + 3,575 for the fees +1,000 for the tax.
Deposits to Mobile Money - I give 10,000 Ugx to an agent and I receive 10,000 Ugx on my wallet.
Mobile Money transfer – When I sent 200,000, Ugx the receiver will receive 200,000, No tax applied.
Buying Airtime, data or MTN bundles – Tax does not apply when I buy Airtime using Mobile Money. I pay 10,000 Ugx and I receive 10,000 in airtime, No tax applied.
MoMoPay – If my bill at the restaurant is 10,000Ugx I will still send 10,000 Ugx using *165*3#, No tax applied.
Mokash – When I request for a 100,000 Ugx loan, I will receive 100,000 Ugx on my account, No tax applied.
Bill payment – The tax does not apply to the subscriber, But some companies may decide to pass it to the subscriber. E.g., UMEME will give you 1% less units
Bank to Wallet – When I pull 1,000,000 Ugx from my bank account, I will receive 1,000,000 Ugx on my mobile wallet, No tax applied.
Wallet to Bank – When I want to transfer 100,000Ugx to my Bank account no tax apply. But some Banks may decide to pass it to the user and only transfer only 99,000.
Salary payment – When I pay my employee using mobile money, they will receive the exact amounts sent, No tax applied.