By; Francis Lubega
The State Minister for Finance David Bahati has appeared before Members of Parliament to justify government’s position to reduce the tax on mobile money withdrawals from 1% to 0.5%.
Bahati clarified to MPs on the Finance Parliamentary Committee that the Excise Duty amendment No. 2 bill 2018 which is an amendment of a previous act that imposed a 1% tax on all mobile money charges, had been revised to avoid uproar.
He says the latest amendment is reasonable since it enhances a cashless economy and facilitates electronic payments free of tax but the charge on withdraws is maintained to facilitate the economy.
The government expects to collect 118billion shillings from this tax although it represents an increment from the previous target of 115bnshs that had been projected on the 1% tax levy.
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