‘Mobile Money Tax Unconstitutional’-Experts
The director of accounting firm, Price Waterhouse Coopers Francis Kamulegeya warns that a proposed 1% tax on mobile money transactions is likely to be challenged constitutionally if passed.
The tax is contained in proposals before the finance committee for consideration before they are forwarded to the house for enactment.
Kamulegeya slams the proposed tax as discriminative, and not equitable since it doesn’t take into consideration a payer’s ability to pay, he asserts that it is an unfair tax since it will apply on the same money very many times.
He then wants government to drop the 1% tax on mobile money but rather adopt a flat rate of 15% on all telecommunication company services.
Kamulegeya advises that an economy is aided to grow by encouraging economic activity and making it easy to transact.
Kamulegeya also opposes the total ban on importing second hand vehicles which he says will result in loss of about 180 billion shillings in tax revenue every year.
He proposes that the banning should be done in a phased manner.