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Telecom companies relieved by new tax reduction on mobile money

By Daudi Zirimala

The Telecom companies have welcomed parliament decision to approve excise duty amendments from 1% to 0.5% on Mobile money withdraws.

According to MTN Chief Executive Officer Wim Vanhellepitte,1% tax of Mobile money was burden because a number of customers were moving away from mobile money and going back to old matters of transferring money with all the risks.

He says this vote by parliament once assented into a  law they will implement it to enable their mobile money agent who have been impacted by the tax to come back into business of Mobile money.

Parliament approved the Excise Duty (Amendment) (No.2) Bill, 2018 effectively reducing the mobile money transaction tax from 1 to 0.5 per cent.

Before the amendment, the bill that came into effect this year, received countrywide condemnation, putting several transaction agents out of business after customers abandoned the popular and convenient payment method.