• Posted on: 10 August 2018
  • By: sanyu-fm-news

Reknown city advocate Fred Muwema has advised parliament that the 0.5 percent charge on withdrawals on mobile money is an illegal levy.

Muwema from Muwema and company advocates was leading a group of legal experts who appeared before the finance committee of parliament chaired by Henry Musasizi.

The committee is currently scrutinizing the excise duty amendment bill number 2 in which government wants to reduce tax on mobile money from 1% on all transactions to 0.5 percent on only withdrawals.

Muwema informed MPs that under the financial Institutions Act only banks are supposed to be engaged in financial transactions and any entity dealing in such does it illegally hence says the mobile money business is irregular.

Muwema adds that under the Uganda Communications Act of 2013 telecom companies are only licensed to engage in communication business and for them to take up financial services when they are not under the control of Bank of Uganda makes the business illegal.

He argues that the tax should be dropped as it already violates two laws in the country.

Muwema went further to illustrate to the committee that mobile money business is not controlled by Bank of Uganda as they presume because under the law banks are supposed to give central bank their audited accounts but telecom companies never do this.