State owned newspaper quotes Minister Frank Tumwebaze saying President Museveni didn't propose any taxes for using social media platforms.
“There is nothing like social media tax. There is no such proposal. That is not what the president (Yoweri Museveni) proposed. No one will tax you for using WhatsApp and Facebook,” he said.
Minister Frank Tumwebaze further clarifies that the president proposed taxes on over-the-top (OTT) services like Skype and WhatsApp calls since they are becoming increasingly popular among Ugandans and yet they are not taxed.
On 5th April, Minister Tumwebaze, in what was seen as a clarification on taxes proposed on social media, said the proposed taxes on social media platforms are meant to promote local content by putting a tax on 'imported content'.
“What the president is saying is, let's put a tax on consumption of imported content. If we are innovating and we are also pushing it and take it online, we export," he said.
How it started
On 31st March, President Museveni's letter to Ministry of Finance and Uganda Revenue Authority, sent shockwaves through social media users.
The president faulted Ministry of Finance and Uganda Revenue Authority for failing to identify tax sources -- proposing introduction of a 'small fee' of UGX100 on simcards using WhatsApp, Skype, Twitter, Viber and Facebook to generate additional revenue of about UGX400bn.
“On the issue of the so called "over-the-top" platforms (OTT), such as Whatsapp, Skype, Viber, Twitter, etc, if we were to introduce a small fee of UGX100 per day from sim-cards that are used by these OTT's, that would generate about UGX400bn additional revenue,” he said.