UG GOVERNMENT TO TAX 5% FROM FACEBOOK, TWITTER, NETFILX & AMAZON

Government of Uganda is planning to collect UGX 5b from Facebook, Twitter, Netflix in the proposed new digital law.

The Government has reintroduced its plan to take 5% tax on foreign owned companies offering digital services in Uganda.

Clause 16 of the Income Tax Amendment Bill 2023 was proposed on Thursday last week after President Museveni returned the Bill among other things amended for Parliament to revisit its initial position.

This proposition is likely to affect the local Ugandans who consume or use these platforms. Also to consider the fact that there have been Ugandans who had thrived or built careers through the use of these platforms.

This has created engagement online with comments advising Government to tax the rich at higher percentages than the poor because of the levels of income inequality.

Many Ugandans have expressed dissatisfaction towards this Bill saying its quite unfair and it is going to cause more Ugandans to become poorer. These taxes often end up in individual’s pockets.

With the latest tax collection policies in Uganda, such as the Agent Banking and Mobile Money withdraw tax, and now the 5% tax on Facebook Twitter and Netflix, it is becoming more difficult for one to live and thrive in this country.

The Bill has not yet been passed however; Government of Uganda is planning to pass it once the open gaps within the Amendment bill are closed.