The new mobile money tax imposes a 1% levy of all total mobile money transactions, withdraws, transfers and deposits.

The minister says the government has removed the mobile money tax on deposits. He clarified that it was an error when the tax came into effect.

"You are not going to be charged the 1% tax if you're depositing money on your account to transact," he told journalists on Tuesday.

Mobile money transactions hit UGX54trillion in 2017 with over 24 million active users, according to Bank of Uganda (BoU).

Read Also: Protests planned in Kampala against mobile money tax

He maintained that all the new taxes that were passed by Parliament after amendment of Excise Duty Bill, 2018, will not be scrapped arguing that Ugandan has the lowest tax base.

Government expects to generate an additional revenue of over UGX100bn from the new Over The Top (OTT) services tax that seeks to levy UGX200 daily on users who want to access social media platforms.

"We have the lowest tax burden in the region...we talked about it in Parliament so that we can have many Ugandans making affordable contribution to the development of the country," he said.

Meanwhile, there are planned protests in Kampala on Thursday against the mobile money tax. Protesters will march peaceful to Parliament to deliver their petition to Speaker of Parliament.