Stop the tax on Social Media and Mobile Money. #CountMyVoiceUG

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Background

On May 30, 2018, The Government of Uganda passed into law the Excise Duty (Amendment) Bill, 2018 which seeks to tax Social Media and Mobile Money usage in Uganda. The law was officially effected on July 1, 2018, and requires users of over-the-top (OTT) platforms such as WhatsApp, Facebook, Twitter, and Skype, Hangouts, Instagram and other social media platforms in Uganda to pay an obligatory daily charge of 200 Ugandan Shillings.

President Yoweri Museveni and the Parliament implemented this unconventional bill, claiming that young people use social media platforms to promote "gossip" in the country. Contrary to the President's beliefs, the majority of youth in Uganda are using social media to create new jobs, connect to both local and international audiences, and find markets for their products using platforms such as Instagram and Facebook.

The tax will have a substantial adverse impact on the social, economic and civic development of Uganda. It goes against the Internet’s fundamental principle as a universally open platform for freedom of speech, access to information and public participation.

The tax also suffocates the digital economy, the predominant money making sector, and a key component for fostering innovation and creativity. In order for the digital economy to thrive, innovators and entrepreneurs need to depend on e-payments, e-learning, and social media as a means of growing their businesses, increasing their professional knowledge, communicating and adding overall value to the state of the economy and their communities.

The tax also discourages Internet usage by undermining the freedom of expression by marginalized groups like women, the disabled, and the poor. In fact, it will likely only increase the digital divide, leaving groups already marginalized with a further gap in benefiting from the digital economy.

Mobile Money has become instrumental in bringing the majority of unbanked Ugandans into the formal banking sector. For a population of over 44 million, there 22 million Mobile Money subscribers as of 2017.


The tax implemented on Mobile Money requires subscribers to pay a 0.5% receiving and withdrawal tax on top of paying withdrawal fee mandated by mobile network operators. The result makes using Mobile Money expensive for the majority of users.

For youth across the country, Mobile Money has been at the core of driving Innovative local solutions and new business models have resulted in the mobile payments space. The tax on Mobile Money will render the majority of the youth unemployed and thus widen the already high rate of unemployment in the Country.

As young people, we cannot allow this to happen. Keeping quiet means that we are going to have to forfeit all the life-changing opportunities that social media and financial inclusion provide.

The Issues
As youth we see three fundamental issues wrong with these taxes:

  • The taxes were implemented unilaterally and without public input
  • The faulty rationale provided is contrary to the best interests of the citizenry
  • The Social Media Tax is contrary to the fundamental principles of a healthy, open Internet

Our Demand
We, the young people of Uganda demand that the Social Media and Mobile Money taxes be annulled because they suppress job creation, talent development, innovation, and freedom of expression.

Moving Forward
Youth represent 78% of the population and the majority of the users of the Internet and social media. Our voices must be counted and heard for policy changes that will have such a great impact. We believe in the multi-stakeholder approach of Internet governance that requires that all stakeholders, i.e. private and public sector be involved in drafting and adopting policies that affect Internet usage.

Additionally, we hope that our campaign will raise much-needed awareness in the region and globally so that other governments hoping to take the same measures engage all voices and make informed decisions that put the people, including youth, at the heart of Internet policy.

What will we do with our collected signatures?
We will deliver them to Hon. Robert Kyagulanyi who will present them to Parliament to represent the voices of the people and urge parliament to review the bill.

Please join us as we call upon the Ugandan Government to reconsider the taxes on Social Media and Mobile Money.



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Evelyn Namara, Mary Helda Akongo, Mwotta Bidemmu, Sarah Kiden and Isabel Odida needs your help with “Stop the tax on Social Media and Mobile Money. #CountMyVoiceUG”. Join Evelyn Namara, Mary Helda Akongo, Mwotta Bidemmu, Sarah Kiden and Isabel Odida and 2,288 supporters today.