With effect from tomorrow Thursday, Ugandans will start accessing Internet services and all other social media sites without paying the Over The Top (OTT) tax or using encrypted connections such as Virtual Private Networks (VPNs).
The government has abolished the Shs200 per day OTT tax and imposed a 12 per cent tax on Internet data in the new financial year, which starts tomorrow.
OTT tax was abolished by 11th Parliament in the Excise Duty (Amendment) Act, 2021, and replaced with excise duty on Internet data.
State minister for Planning Amos Lugoloobi, while presenting the Financial Year 2021/22 budget on June 14th, said the excise duty is tailored towards enabling the country to attain industrialisation for inclusive growth, employment and wealth creation.
OTT or social media tax was first introduced in 2018 and caused a nationwide uproar and protests in Kampala led by then Kyadondo East MP Robert Kyagulanyi, aka Bobi Wine.
