Blame NRM MPs for social media tax – FDC

Ugandans agitated with the new taxations on social media and mobile money transactions should direct their anger at no one other than at the ruling party, National Resistance Movement (NRM) legislators, opposition political party, Forum for Democratic Change (FDC) has said.

FDC said the Shs 200 daily charge for social media usage and an increment from 10 per cent to 15 per cent excise duty as well as the 1% taxation for every mobile money transaction is excessive and a burden to already burdened taxpayers.

Social media users are required to pay Shs 200 daily in a tax that came into effect on July 1. On the other hand, government takes in 1% for every mobile transaction for either deposit, sending, receiving or paying. Transactional fees were also increased from 10 per cent to 15 per cent.

MPs in the House

The ‘social media tax’ has caused so much uproar with many Ugandans resorting to using virtual private networks (VPN) applications to avoid paying the tax.

Speaking at Najjanankumbi the FDC party headquarters at the weekly press conference, Paul Mwiru the deputy secretary for information said as the opposition, they opposed the tax on the first day it was proposed but they were overwhelmed by the ruling party, NRM majority in parliament who passed it despite the resistance.

“This tax is a barrier to access to information with the malicious intention of leaving Ugandans ignorant of what is happening in their country. Countries cannot move to prosperity by taxing their own people like this,” Mwiru said.

Mwiru said the social media tax was passed by NRM MPs who were in their caucus discussing the Sugar Bill. They were suddenly called into parliament to pass the Excise Duty (Amendment) Bill, 2018 on May 30 in a voice vote. Government estimates to collect between Shs 400 billion and Shs 1.5 trillion annually from the new taxes.

While several opposition MPs opposed the mobile money tax, very few MPs actually debated the social media tax according to the Hansard, the official recording of parliamentary proceedings. It seems at the time, the MPs did not see the Shs 200/daily charge as significant.

Meanwhile, FDC has expressed their willingness to take part in the forthcoming Local Council elections starting with the Women Councils that are to be held today July 3.

Mwiru however expressed his displeasure about the denial to nominate FDC candidates in districts like Ssembabule, Kampala, Wakiso, Ngora, Rukungiri, Kapchorwa, Kamwenge, on grounds that nomination had already taken place in November last year.

“A complaint was filed by our secretary general [Nathan Nandala Mafabi] to the Electoral Commission but nothing was done,” Mwiru said.

He also decried the intimidation from the state and security operatives and the commercialisation of politics which he said has become a norm across the country. He cited the giving of Shs 30m to each NRM MPs to mobilize for their party to win the elections saying this will negatively impact the country.

Mwiru also cautioned the public against accepting the money given to them by the NRM candidates.

“This will have a long term effect where you will have to pay for everything including passport stamps, signatures and any assistance from your local leaders,” Mwiru said.

On the coming by-election in Arua municipality that fell vacant after the death of Ibrahim Abiriga who was gunned down last month, Mwiru said their candidate will still be Musema Mudathir Bruce who scored 7,227 votes against Abiriga’s 8,473 in the 2016 general elections. The election is to be held on August 13.