Musician Alexander Bagonza aka Apass has rejected the newly imposed social media tax calling it illegal.
Speaking to press at Hotel Africana Monday, Apass accused the government of imposing an illegal tax which he called the highest level of disrespect to the citizens.
A group of Members of Parliament, journalists, comedians, musicians and other artists in the entertainment industry as well as internet users and software creators, roundly rejected the tax.
Arguing that the new taxes were unfair and regressive, the group vowed to avoid the tax until the law is repealed.
But minister David Bahati says government expects to earn over 100 billion from the new OTT tax in the new financial year.
He also noted that this money will help solve a number of infrastructural problems.
The Uganda Communications Commission’s ED Godfrey Mutabazi announced that that the social media tax was here to stay and the only modifications to be made will be in how it is charged.
Meanwhile, operators of mobile money businesses are registering low sales 3 days after a new 1% tax on mobile money came into effect.
The operators say they are receiving fewer customers as many of their potential customers have resorted to transacting through banks or physically delivering money to the intended recipients.