President Kaguta Museveni, in a surprise lengthy statement, says mobile money is a useful service and there was miscommunication on the tax appropriation.

He adds that the actual figure was supposed to be 0.5% and "that is where the debate should be".

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"This is to clarify that there is no tax on mere depositing of money on a mobile phone account. That confusion should be clarified. The half -percent tax, not 1 percent, is only on the sender and the receiver of money through mobile money," part of the president's statement reads.

In his statement, Museveni who has ruled Uganda since 1986, reiterates his appreciation towards the science team that demonstrated "the goings on in the telecommunication and financial services".

Mobile money users were outraged by the controversial tax which affects both the recipient and sender's total transactions, withdraws and transfers.

There are planned protests on Thursday where concerned citizens led by Kampala Association of Mobile Money Traders are marching to Parliament to petition the speaker over mobile money tax.