MTN Uganda announced revised Mobile Money rates effective Tuesday, 2 July 2013.
Commenting on this increment, the MTN Uganda's GM Corporate Services, Anthony Katamba said, "According 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. 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".
MTN Mobile Money touches the lives of many Ugandans on a daily basis and therefore there is the need to continuously invest in infrastructure to ensure improved service standards and reliability.
MTN Uganda's 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, as example the convenience of sending UGX 4 million to another Mobile Money registered subscriber will cost UGX 2,200.
As Uganda's leading tax payer MTN Uganda has an obligation to support the National development agenda by assisting in tax collection as prescribed by law.
"Although 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," Katamba added.
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.
"We 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," he concluded.