URA recently welcomed a delegation from Airtel to engage in discussions regarding tax-related issues and foster stronger ties between the two organizations.
During the meeting, Manoj Murali, the Managing Director of Airtel Uganda, expressed his concerns about the 0.5% tax imposed on mobile money withdrawals. He highlighted that this tax has led customers to opt for agency banking instead.
Murali also highlighted Airtel’s collaboration with UNICEF, wherein the telecom company is providing free internet services to schools for a duration of 5 years.
In response, John Musinguzi, the Commissioner General, mentioned that URA had previously reached out to the Ministry of Finance regarding the 0.5% withdrawal tax and was awaiting a response regarding the tax exemption.
“The partnership with UNICEF is an excellent project that URA would be eager to support. Our initial thinking revolved around waiving excise duty solely for educational institutions, although VAT was not taken into consideration. However, the final decision lies with the Ministry of Finance, and URA will collaborate with them to explore ways to make data more affordable,” he explained.
Regarding the Over the Top Tax (OTT), Mr. Musinguzi assured that the matter would be deliberated upon in order to find a mutually agreeable solution with the telecommunications industry.
He also commended Airtel for their compliance and acknowledged that URA relies on them as one of Uganda’s top taxpayers for the current month.
