The Uganda Revenue Authority (URA) has embarked on a process to review the 12% levy on internet data that came into force in July this year.
In an interview, Patience Tumusiime, the Commissioner Legal Services and Board Affairs said the review follows concerns linked to the pandemic disruptions of business such as school children who have to learn from home.
“Yes, we have had feedback. People said we [URA] have now increased the cost of the internet and yet even with the exclusion of medical services, research and education services, it has also not helped a lot. Some people have said in the era of COVID-19, people are studying online.
“So, we are collecting research and we are having discussions with the telecom players to see the best way we can advise the minister of finance to see if we can change it to something else or other options available,” Tumusiime said.
In 2018, the government slapped a sh200 daily over the top tax (OTT) on social media platforms such as Facebook, Twitter, WhatsApp among others. However, netizens resorted to using Virtual Private Networks (VPNs) to bypass the tax.
The government withdrew OTT in 2021/22 financial year due to its poor performance. Government then introduced a 12% excise duty on internet data to replace OTT. However, the tax is not applicable for provision of medical services and education services.
Some leaners are currently being taught through online platforms such as Zoom and Microsoft Teams as the education sector marks nearly two years under lockdown.
Asked how the telecoms distinguish data used for medical or education at the point of sale, Tumusiime said: “It is of course very difficult to determine what the data is being used for. What we have done is to ask the ministry of education and ministry of health to give us a list of their service providers. For now, those who are registered are the ones buying their data and not pay the tax.
“We are working with the ministry of health and education to give us the list of those other service providers in the sectors. If you are not on that list, you will not be able to benefit,” she added.
