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Airtel Uganda refunds customer mobile money tax levy

Airtel has started refunding customers who had earlier paid 1% tax as directed by the president Museveni. (FILE PHOTO)

KAMPALA- Telecommunication Company Airtel Uganda has started refunding customers who paid the 1% mobile money tax.

At the beginning of this month telecom companies were directed to start charging 1% on mobile money transactions including on withdrawals, sending, and deposits. The mobile money tax had triggered a massive outcry in the country.

Consequently, on July 13, President Yoweri Museveni in a statement ordered that Ugandans who paid the 1% per cent mobile money tax be refunded as the 1% levy was passed by parliament and signed by him in error.

He also ordered the tax be reduced to 0.5 per cent and be charged on only withdrawals. Government also brought an amendment bill currently before parliament to effect the changes.

Following such a background, Airtel customers have started receiving their refund. Airtel public relations officer, Sumin Namaganda confirmed that the refund process started Saturday, July 28.

It is not yet immediately clear whether other telecoms; MTN and Africell have also adhered to the directive.

Different Airtel customers have confirmed receiving the refund.

Junior finance minister David Bahati recently said that government had raised Shs 5bn from mobile money tax and Shs 2bn from the social media tax in less than two weeks after the new taxes were introduced.

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