MTN Uganda has announced revised Mobile Money rates amid a\u00a0new 10% tax on money transfers. The new tariffs are\u00a0effective July 2, 2013.<\/p>\n
MTN Uganda\u2019s GM Corporate Services, Anthony Katamba said: \u201cAccording to the new national budget 2013\/2014, the 10% levy on Mobile Money is to be applied on transaction fees paid on all money transfer services and as such the fee is paid by users.<\/p>\n
“It should be noted that the new 10% levy is to be applied on all money transfer services offered in Uganda, including those offered by non-telecom operators\u201d.<\/p>\n
MTN said that there is a need to continuously invest in infrastructure to ensure improved service standards and reliability.<\/p>\n
MTN Uganda\u2019s Mobile Money active customer base has recorded significant growth by more than 50% during the last 12 months. The new Mobile Money rates will have slight increase on transaction fees, the operator said.<\/p>\n
As of 31 March 2013, MTN Uganda recorded 7.95 million subscribers, while in financial results\u00a0for the year ended December 2012, MTN noted that data revenue increased 86,4% supported by a strong\u00a0performance in MTN Mobile Money.<\/p>\n
“With 78% of our subscriber base registered and more than 2 million\u00a0transactions each month, MTN Mobile Money now contributes meaningfully to Uganda\u2019s revenue,” MTN said.<\/p>\n
MTN Uganda has an obligation to support the National development agenda by assisting in tax collection as prescribed by law, the group said in a statement.<\/p>\n
\u201cAlthough we feel the tax has been applied at a very early development stage of the Mobile Money product, MTN is committed to continued investment and growth of the service in Uganda,\u201d Katamba said.<\/p>\n
The national budget aims to widen the tax base, and one of the ways in which Government reaches new tax payers is via consumption taxes on various goods and services.<\/p>\n
\u201cWe evaluated the impact of this new tax with all stakeholders and we saw the need to adjust our rates slightly in order for us to support this tax increment,\u201d Katamba said.<\/p>\n
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