The social media giant has over 2 billion monthly users
Facebook Africa's Public Policy Manager Kojo Boakye revealed the model of the investment will greatly be affected by the UGX200 daily social media tax, formally known as OTT tax.
He informed Uganda Communications Commission that Facebook may "take their investment plan somewhere else" if the government doesn't reconsider its decision.
Boakye also said the tax, which came into effect on July 1st, is likely to "render useless" the millions the company has invested in fiber.
Last year, Facebook announced that it will lay almost 500 miles of fiber cable in the East African country and partner with local telecoms to provide internet access
There was a notable decline in social media usage after the implementation of the social media tax.
A report released in July indicated that social media usage declined from 96% (representing usage in the last 6 months) to 85% after introduction of the UGX200 daily tax.
There have been several demonstrations against social media and mobile money tax in Uganda's capital, Kampala.