(Ecofin Agency) - Uganda’s parliament, via an ICT commission, has ordered the ministry of ICT to assess the impact of the social network tax introduced by the government in July 2018.
This assessment was ordered by the parliament after the ICT minister Frank Tumwebaze acknowledged the negative impacts this tax had on the local telecom sector.
Yet, when it was introduced, the finance minister indicated that it would broaden the tax base.
As far as he is concerned, Yoweri Museveni, the country’s president, indicated that the 1% tax was internet bad mouths’ contribution to the development of their country and it would fight fake news that damages the country’s reputation. He estimated that the tax would help generate about 600 billion shillings ($161 million) yearly for 200 Ugandan shilling ($0.05) tax levied on the daily use of WhatsApp, Facebook, Twitter, Viber… 1400 shillings (0.37 US dollar) and 6000 shillings (1.61 $) respectively per week and per month.
The assessment should review whether the tax led to a decrease in the data traffic as well as of telecom operators’ turnover and its impact on fiscal revenues.