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OTT tax stops today, but how is 12{a6adf960b9dc55bb3e49ff07c82daa20469ae533cf096e1b9d27878361bb9db5} internet tax going to work?

The government of Uganda has trashed the Over The Top (OTT) tax also known as the social media tax to replaced it with a 12{a6adf960b9dc55bb3e49ff07c82daa20469ae533cf096e1b9d27878361bb9db5} internet tax. 

The tax which was introduced in 2018 was expected to earn government shs285billions but according to Uganda Revenue Authority’s statement in July 2019, they had collected only shs 49.5billion. This is because Ugandans resorted to using Virtual Private Network (VPN ) to dodge paying the shs200 per day tax.

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But how is the 12{a6adf960b9dc55bb3e49ff07c82daa20469ae533cf096e1b9d27878361bb9db5} tax on the internet going to work?

With just hours left for telecom companies to scrap off OTT, it is still a mystery how new tax on internet will work.

How the 12{a6adf960b9dc55bb3e49ff07c82daa20469ae533cf096e1b9d27878361bb9db5} tax on the internet is going to work? Exactly this is now the question from every Ugandan who uses the internet but it is yet to be answered by the government and the telecom companies.

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To understand the 12{a6adf960b9dc55bb3e49ff07c82daa20469ae533cf096e1b9d27878361bb9db5} tax on the internet and how it is going to be implimated, Boom.ug has reached out to different telecom giants for a better explanation but to our surprise, they also don’t know how the 12{a6adf960b9dc55bb3e49ff07c82daa20469ae533cf096e1b9d27878361bb9db5} tax is going to work.

“Yes, OTT is going to be removed today and 12{a6adf960b9dc55bb3e49ff07c82daa20469ae533cf096e1b9d27878361bb9db5} internet tax will immediately start on each bundle you buy. However, we are still waiting for the government to brief us on how this is going to work and how they want it,” A representative from MTN Uganda told Boom.ug.

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“We shall notify our customers via SMS or through our social media platforms about how this 12{a6adf960b9dc55bb3e49ff07c82daa20469ae533cf096e1b9d27878361bb9db5} tax is going to work,” Representative added