Banks, telecommunication companies increases tax as the new tax policy begins to bite

In line with recently passed budget, many sectors have started implementing the new tax policies that have been recently passed by the parliament.
Apart from social media tax which has been  widely talked about, telecoms companies have also increased Mobile Money tax by levying 1% on every transactions.
This includes depositing, withdrawal and sending money. Experts have warned that the new tax policies will put financial institutions in danger if not killing them off.
Take for instance  when you want to withdraw 200,000/- from your mobile money accounts  be ready for 2000/- tax + 3575/- withdrawal fee totalling to 5575/-. This will definitely put mobile money out of service.
Banks have also announced increment in transactions charges. According to statement released by centenary bank, exercise duty will increase from 10% to 15% effective July 1st. Stamp duty charges have also been increased from 10,000/= to 15,000/=.
Economists have warned Ugandans to prepare for tough times while other analysts have urged the new tax policies will scare away investors leading to loss of jobs and slow economic growth.
It is wait to seen how the government ensure 6% economic growth as suggested in the Budget.
President Yoweri Kaguta Museveni recently instructed Uganda revenue authority to work 24 hours a day to ensure every single tax is collected.

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