For many, social media taxing has turned out to be a big blow towards their day to day online lifestyle. From an innovator’s point of view, online media taxing and the current proposed ICT regulations may clearly hinder any future ICT innovations.
Many successful startups in Uganda including the popular Boda hailing service Safeboda have all grown support and exposure through the old tax free system. But, with the new proposed ICT regulations, innovators may seize to have a broad ground to showcase and develop new brilliant solutions.
During last year’s Uganda Communications Commission’s (UCC) hack for transport Hackathon. Hackers used opensource tools like the IBM cloud-based Bluemix platform to develop and come up with fresh new solutions. Which is, by the way, an online opensource tax-free developers tool.
While Quick Tap emerged winners of UCC’s three-day hackathon after successfully pitching the best transport solution with a whole lot of support promised to them by UCC. We have never received takeover news about the startup in this daily age even when it was a Safeboda sort of competitor.
UCC through this expressed support for innovations in Uganda. But then, with the proposed ICT regulations young innovators may ditch their ideas since the internet is a core tool for research and development. With taxation of some of the core services that turn the internet into a fun spiced research zone. Innovations in Uganda can turn into a historical kind of progression with only uptown developers paving way for better solutions.
According to a new study about the financial technology sector.The financial deepening sector (FSD) has grown to about 65% in the last 7 years in East Africa alone.
However, with factors limiting the rate of innovations and development. The rate will depreciate hence limiting the number of creative minds willing to put their skills at stake for better innovative ideas. Therefore, while Government is set to Tax social media and online media platforms. Innovators will no longer have greener pastures to develop new startups in Uganda.