Govt wants OTT scrapped, proposes 12% tax on internet
April 1, 2021 Finance minister Matia Kasaija tabling the tax proposals
The government is proposing the abolition of Over the Top Services (OTT) under the Excise Duty (Amendment) Bill, 2021.
The Bill was tabled today by minister of Finance Matia Kasaija and proposes the re-introduction of excise duty at a rate of 12 per cent on internet data. According to audit firm, PricewaterhouseCoopers, the Bill proposes exclusion for data used for the provision of medical and education services.
OTT or social media tax was first introduced in 2018 and caused a nationwide uproar and protests led by the outgoing Kyadondo East MP and former presidential candidate Robert Kyagulanyi. A section of the public then demanded a reconsideration of the Excise Duty (Amendment) Act, 2018 with a view of removing the Shs 200 OTT tax that came into effect on July 1, 2018.
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Govt wants OTT scrapped, proposes 12% tax on internet
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