Parliament slices mobile money tax to 0.5%

By Moses Kidandi
State minister for finance David Bahati has clarified that the 0.5 % TAX on mobile money will apply to only those that will be receiving money from senders.
Bahati was explaining some of the cabinet decisions following a public out cry protesting the 1 percent tax that  was initially passed on all mobile money transactions in the National Budget for the financial year 2018/2019.
ICT minister Frank Tumwebaze  has urged the public not to panic parliament is this afternoon also expected to pronounce its self on the same matter that has already been concluded by the cabinet.
The legislators are  also expected to deliberate on the two hundred shilling OTT Tax that has been levied on social media.
Last week opposition MPS  and activists led by  Hon Robert Kyagulanyi  of Kyadondo East  were involved in a stand off that with Police as they protested the social media tax.

URA, telecom companies dragged to court over 1% taxes on mobile money

By Sania Babirye
Uganda Revenue Authority and three Tele-communication companies have been dragged in the Kampala high court for allegedly illegally  collecting the 1% tax levied on Mobile money deposits .
According to the petitioners  John Robert Tukyakira and Anthony Odur, the tax that came into effect since the 1st of july 2018 is unlawful and URA alongside MTN, Airtel and Africell telecommunications companies are collecting the controversial tax illegally and erroneously thereby   infringing on  the citizen’s fundamental rights guaranteed in the Constitution.
They also claim the tele-communication companies cannot ably account for the illegally collected money from depositors on behalf of URA.
They are  now seeking court to compel the  respondents to refund all the collected monies from the public and and also   court to issue a permanent injunction stopping URA and the  tele-communication companies  from collecting the said  taxes from Mobile money depositors .

Mobile money fraudster rackets invade Gulu

Police in Gulu are investigating a new racket of mobile money fraudsters.  According to police, the fraudsters hack into the account of mobile money dealers and steal their float.

James Asubu, the Officer in charge of Crimes at Gulu Central Police Station, says on average he receives three cases of fraudulent transactions each day. Asubu says several mobile money operators have lost millions of Shillings in fraudulent transactions.

He says the fraudsters work in groups and move from place to place to defraud dealers. Asubu faults the dealers for rushing to send cash without receiving anything in return.

Fatuma Nalubega, a mobile phone dealer in Gulu main market is the latest victim of the fraud. According to Nalubega, she lost Shillings 1.5 million to the racket.

Nalubega says the fraudsters tricked her using the identity of her boss to transfer the money on their accounts.





Simbapay cross continental Mobile money service emerges in Uganda

Persons living in Europe now have another digital money transfer platform through which they can send money to mobile phones in Uganda.

The new service by SimbaPay, a London based money transfer provider, allows Ugandans living in the United Kingdom and other European Union countries to remit money to anyone in Uganda using an app.

Transfers made using SimbaPay are credited within seconds to recipients’ mobile money wallets and can be accessed from any Mobile Money agent instantly. The same service has been extended to Ghana.

“This is the perfect Christmas gift to Ghanaians and Ugandans living in Europe who have been asking when SimbaPay will expand coverage to their home countries” Nyasinga Onyancha, the Chief Executive Officer of SimbaPay said in a statement issued this morning.

He adds that by delivering money via existing mobile money wallet services, many recipients who could not access formal financial services can now do so. Uganda has over 20 million Mobile Money subscribers.SimbaPay also delivers mobile money transfers to Nigeria and Kenya.

The Company joins a market already occupied by WorldRemit, whose customers have since April 2016 been able to send international remittances instantly to MTN Mobile Money wallets in Rwanda, Uganda and Zambia.

Another App known as wave is used by Ugandans in United States of America to send  mobile money to subscribers in East Africa.

There are over 3 million Ugandans in the Diaspora whose remittances increased from USD 411 million (1.4 trillion Shillings) to $915 million (3.2 trillion Shillings) in 2014, according to the 2015/2016 budget speech by finance minister Matia Kasaija.

Most remittances to Uganda from the Eurozone come from the United Kingdom which, according to a 2012 report by the UN Conference on Trade and Development (UNCTAD), was a source of USD 176 million (630 billion Shillings) that is sent to Uganda.