Uganda Revenue Authority want Over the Top Tax (OTT) abolished.
Uganda Revenue Authority (URA) has advised government to make changes in some of its tax policies to eliminate those that are under performing. Among the taxes that URA wants government to abolish is the social media tax, known technically as the Over the Top Tax (OTT).
The revelation by the URA Commissioner General Doris Akol is based on failure by the tax man to collect the revenue targets from OTT. Akol and a delegation of the technical officers from the tax body have been appearing before the Finance Committee of Parliament to present the body’s budget frame work paper for the coming financial year 2020/21.
She says that revenue collection from OTT has suffered huge evasions and thus a need for amendment of the Exercise Duty Act and have a policy shift to directly charge OTT on data than from mobile money.
The tax on social media was introduced by the executive and passed by parliament in 2018 amid widespread public outcry.
The Shs200 daily tax on social media sites like Facebook, Twitter and Whatsapp, was introduced following a directive from President Museveni who urged that the tax would cut on the amount of time that Ugandans spent gossiping on social media, on top of enhancing the URA revenue pool.
Meanwhile, Akol told MPs on the Finance Committee that government should also consider abolishing of some non-tax charges on some Government services like verifying land titles, renewing passports, driving permits among others.
She says that this would address the tax morale issue in Uganda.