President Yoweri Museveni has proposed a social media tax to curb the consumption of foreign content and the utilisation of foreign mobile applications said Frank Tumwebaze, Minister Information Communication and National Guidance.
In a letter dated March 12, the Ugandan President recommended to the Minister of Finance Matia Kasaija a charge of Sh100 per day in tax on social media users on platforms such as WhatsApp, Viber, Skype, Twitter, and Facebook.
According to the President, social media tax would earn the government nearly Sh400 billion a year while reducing the amount of time wasted on social media thereby increasing productivity. However, the proposal has been criticised by human rights activists and social media users as a breach of the freedom to expression where Ugandans use such platforms to criticise the government.
Critics also say that the country should follow the example of countries where taxes on internet and technology are being reduced to increase connectivity and accessibility. Additionally, Ugandans feel that the social media will increase taxation two-fold since they are already paying tax through airtime and money used to purchase data.
Tumwebaze said the proposal has not been taken well but that it is for the best. He said the tax will offer an opportunity for local content to grow while using social media as a source of revenue.
“The president was simply challenging us to come up with our own content and take it online. The tax is on consumption of the content produced by foreign developers. Since Facebook or WhatsApp (companies) are not here for us to tax, let us tax you who are using their service,” he said adding that the government wants the development of local mobile applications to grow. The local apps shall be available to Ugandans tax-free.
Telecom Companies to Share Internet Infrastructure
Speaking at the 19th ordinary session of the Africa telecommunications Union council of administration, the minister also said the government will introduce a policy requiring telecom companies to share internet infrastructure.
“If Airtel has an optic fibre in Karamoja, another company should not invest in optic fibre there but should simply share the existing one. Competition shouldn’t be in putting up infrastructure but delivering services,” he said.
Presently, telco companies are using different infrastructure to which they install themselves, hence making internet services in the country very expensive for the consumers.
“We now want broadband infrastructure to be a public good with new and cheaper additions like the optic fibre and satellites especially in rural areas,” he said.
Furthermore, the minister said telecom companies will be required to operate nationally as opposed to a smaller geographical area to allow effective competitions.
“If we give you a national licence and you are only operating within Kampala, it gives the other party a monopoly within the area you are not in,” Tumwebaze said.
