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Airtel Uganda says taxation hits digital inclusion

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Friday 10 January 2020 | 09:57 CET | News

Airtel Uganda says taxes on internet service have been the biggest challenge to achieving digital inclusion and low data costs, the Monitor reported. MD VG Somasekhar said that the telecom sector has tried to cut prices but achieving affordability and digital inclusion remains difficult because of the current structure of the tax regime. He said that with VAT, Excise Duty and over the top tax (OTT), taxes on internet access are over 50 percent.

Semasekhar said that despite all these challenges, “Uganda is digitally ready to leap”.

In 2018, the Ugandan government implemented a social media tax of UGX 200 per day with a target to collect at least UGX 24.6 billion every quarter. This led to a noted reduction in internet expenditure and the use of Virtual Private Networks (VPNs) as subscribers try to manoeuvre around the tax.

—— AUTO – GENERATED; Published (Halifax Canada Time AST) on: January 10, 2020 at 06:53PM

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