As the Ugandan government scrapped the daily UGX 200 OTT tax, they have now enforced a 12% excise duty on data bundles.
Officials commented saying that the OTT tax failed to perform to expected levels as many internet users found ways to bypass the regulation.
This 12% excise duty was approved by Parliament in April after the passing of Amendment Bill 2021.
This tax is expected to impact data prices that are higher compared to other countries in Eastern and Southern Africa.
Telecommunication operators including Airtel Uganda and MTN Uganda, have confirmed that they will absorb the 12% tax on data.
“Our subscribers will not be required to pay OTT in order to access social media websites and Apps. We shall institutionalise the 12% excise duty tax as mandated by the government of Uganda. However, Airtel Uganda will absorb the excise duty for all pre-paid data packs, thus maintaining our pre-paid data prices. This will allow Ugandan customers to enjoy and connect with the world seamlessly using our affordable and reliable 4G smartphone network with no limitation. All other standardised and customised voice and data bundles remain unchanged and are accessible on all our platforms. We believe everyone deserves the benefits of a modern, connected life. Accordingly, all customers can now access the internet and social media platforms without paying the said tax. All OTT tax, inclusive data of bundles, has been discontinued.”
Amit Kapur, Chief Operating Officer, Airtel
