Business 15 April 2026 Parliament of Uganda
Telecom Operators Urge Parliament to Slash Mobile Money Withdrawal Tax
Uganda's telecom firms, led by MTN, have petitioned Parliament to cut the 0.5% tax on mobile money cash withdrawals from 0.5% to 0.25% with a Shs5,000 cap, citing its heavy impact on low-income users. They argue lower rates would boost transactions and government revenue while also calling for smartphone import duty relief. Source: https://www.parliament.go.ug/news/4396/telecoms-push-cuts-mobile-money-tax
Telecommunications companies in Uganda are pressing Parliament to reduce the 0.5% excise duty on mobile money cash withdrawals. Officials from MTN Uganda and Airtel appeared before the Committee on Finance, Planning and Economic Development, chaired by Hon. Amos Kankunda, on April 15, 2026.
Leading the delegation, MTN’s General Manager for Corporate Services, Dennis Kakonge, highlighted how the tax unfairly burdens low-income Ugandans who rely on mobile money daily. He contrasted it with lighter taxes on ATM and bank withdrawals, which favor middle-income groups.
Kakonge noted that withdrawing Shs500,000 incurs Shs2,500 in duty plus a 15% service fee. He argued Uganda’s rates exceed those in larger digital markets and proposed slashing to 0.25% with a Shs5,000 cap, projecting Shs80 billion in revenue from increased usage.
The operators also requested removal of import duties on entry-level smartphones to curb smuggling, improve affordability, and enhance digital access. Kakonge pointed to Uganda Revenue Authority concerns over untaxed phone imports.
MPs pushed back, demanding better network coverage, especially in tourism spots like Bwindi. Hon. Dicksons Kateshumbwa criticized connectivity gaps in rural areas. Others, including Hon. Paul Omara, flagged high fees hindering financial inclusion, while Hon. Karim Masaba endorsed affordable agent banking.
Source: Parliament of Uganda