Uganda's parliament passes 12% excise tax on the Web

ISTANBUL, TURKEY – JULY 29: In this photo illustration, social media apps are seen on a mobile phone on July 29, 2020 in Istanbul, Turkey. The Turkish parliament passed a new law regulating social media content on Wednesday. The law requires foreign social media companies to have a representative based in Turkey in order to address any concerns raised by the authorities about the content. (Photo by Chris McGrath / Getty Images)

The Ugandan Parliament passed a series of new taxes on Thursday evening that will come into force on July 1, 2021, including a measure to introduce a 12% excise tax on bundles of internet data.

Parliament tweeted late Thursday that lawmakers had passed the Excise Duty (Amendment) Act of 2021, which will introduce the 12% tax on internet data.

This aims to increase revenues and pay off rising national debt.

Reuters reports that many Ugandans have criticized the move, saying it will further hamper access to the internet at a time when the COVID-19 pandemic has made online services even more important to parts of the economy such as education.

The announcement came after Parliament announced it had cut the daily social media tax of Shs 200.

The tax on OTT (Over-The-Top) services required telecommunications subscribers to pay a daily subscription to access social media platforms such as Facebook, Twitter, WhatsApp and Instagram.

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