The Ministry of Finance, Planning and Economic Development says one of the main reasons as to why the government introduced a 12 per cent Excise Duty on internet use was to trap Ugandans who were evading OTT by using Virtual Private Networks (VPN).
The Over the Top Tax of 200 Shillings a day was introduced in 2018 amid protests from the public and civil society, who argued that it was a violation of the right to information and would limit the growth of IT-based communication.
The Director of Economic Affairs at the Ministry of Finance, Planning and Economic Development, Moses Kaggwa says while this is expected to reduce tax administration challenges and increase revenues, it will plug the revenue gap left by the VPN users.
Kaggwa also gave justification that the new tax and the removal of OTT followed public complaints that it was stifling communication, and therefore, the ministry thought the excise duty would make it easier for the internet users.
But he also says OTT was unfair because users like students were suffering more than others, adding that the new measure will not hurt particular groups.
This was during an engagement between the government and private sector players, who expressed concern about the new measures and their effects on the economic activities and livelihoods of Ugandans.
