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Uganda Implements Social Media Tax Despite Backlash

Kampala, Uganda – Ugandan citizens must now pay a fee to access popular social media platforms like WhatsApp, Facebook, and Twitter, as a newly enacted law takes effect. The Ugandan parliament passed the legislation in late May, introducing a tax on Over The Top (OTT) platforms that provide messaging and voice services.

Starting from Sunday, users are required to pay 200 shillings daily (around $0.05) to use any of over 60 OTT platforms, translating to about $1.5 per month or $19 annually. This is a significant burden in a country where many live on less than $1 a day.

The government defends the move, stating that the revenue will be instrumental in advancing Uganda’s goal of becoming a middle-income nation by 2020. However, critics argue that the tax restricts freedom of expression, hampers business opportunities, and further impoverishes Ugandans.

Human rights activists view the tax as a broader strategy to suppress free speech and are preparing to challenge its constitutionality. Rosebell Kagumire, a blogger and executive director of the NGO Kweta, described the tax as an attempt to stifle public discourse.

Approximately 17 million Ugandans—41% of the population—use the internet, mostly through mobile devices. Social media platforms like Facebook and Twitter are particularly popular.

President Yoweri Museveni, in power for 32 years, has previously criticized social media, referring to the tax as a way to address the effects of online “gossip.” Critics claim the government often uses outdated laws to suppress dissenting voices. For instance, activist Stella Nyanzi was jailed last year for criticizing the president’s failure to deliver on an election promise.

During the 2016 presidential elections, the internet was largely inaccessible, with Museveni’s administration accused of voter suppression tactics.

The Minister of Information Technology and Communications, Frank Tumwebaze, defended the tax, suggesting that it would improve internet services by generating revenue for better connectivity. “If we can tax essentials like water, why not social media?” he questioned.

However, NGOs like Oxfam argue that the tax targets low-income individuals, students, and small businesses, while failing to generate the anticipated revenue. Oxfam suggested that the government could have raised more money by ending tax breaks for large corporations and enforcing stronger tax laws.

Critics also fear that the tax will diminish civic engagement, as fewer people will be able to share their views online. Sophie Kyagulanyi, from Oxfam’s governance and accountability program, warned that this will limit citizens’ ability to hold the government accountable and access vital information.

Telecom companies have started guiding users on how to pay the tax via mobile money, but a one percent tax on all mobile transactions further compounds the financial burden on Ugandans.

Some users are choosing to bypass the tax using virtual private networks (VPNs), while others protest the move as unfair and an example of double taxation. Rony Mestel, a social media user, criticized the tax on Facebook, predicting high levels of tax avoidance. Meanwhile, Fred Wandera, who found his job through social media, expressed concern that unemployed youth might now struggle even more to find opportunities online.

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