Advertisement

Survey shows Ugandans strongly oppose social media & mobile money taxes

The impact of social media & mobile money taxes
Advertisement

Whitehead Communications, a communications and public relations firm in Uganda. has released a damning report revealing how the controversial taxes on social media and mobile money are affecting people.

Advertisement

73% of Ugandans oppose social media tax while 79% oppose mobile money tax, according to the survey on these taxes which came into effect on July 1st.

The survey was conducted between 13th to 16th July and represents 93 districts with a sample space of 2,918 responses, generated from 3,015 responses after data clean up.

73% oppose social media/OTT tax

Advertisement

85% of the respondents revealed that they have at least accessed social media since the OTT tax was implemented.

However, 57% acknowledged that they use VPN, 40% pay the OTT tax and 38% use Wifi.

1,640 respondents explained that their businesses have been affected by the OTT tax through disrupted payments, increased the cost of doing business and loss of income.

71% responses indicated that social media tax 'extremely' inconveniences -- and 73% strongly oppose the tax.

79% oppose mobile money tax

Advertisement

The report furthermore indicates that 83% of Ugandans who participated in the survey were extremely inconvenienced by mobile money tax which has since been reduced by 0.5% and only applicable on withdraws.

There was a significant decrease in mobile money usage.

Ugandans who participated in the survey showed that 93% used mobile money in the last 6 months but after implementation of the tax, 47% stop using mobile money, 44% transacted less in July, 4% transacted more and 3 transacted the same as before.

The report also indicates that 57% of mobile money agents who participate in the survey transacted less money in July while 38% stopped transacting -- meaning a possibility of closure of businesses.

83% respondent said they are inconvenienced by mobile money tax -- and 79% strongly oppose it.

Advertisement

Averagely, 76% of Ugandans who participated in the survey oppose both social media and mobile money taxes.

Advertisement