New digital taxes are regressive

Daily Monitor
Tuesday May 11 2021
The  Parliament of Uganda recently passed the Excise Duty Amendment Bill, 2021 in which new taxes were introduced. One of such is that requiring users to pay a 12 percent levy on internet bundles. The internet tax levy replaces the Shs200 daily over-the-top tax that many people had started evading through virtual private networks. At a time when businesses are struggling to remain afloat from the effects of Covid-19, employers cutting back on wages and withdrawing benefits, the last thing government should do is  front-load citizens with new taxes. The internet tax is particularly going to hurt internet users especially enterprises whose business model rely heavily on the internet. It will slow connectivity and breed a culture of tax evasion as people find creative ways to beat this tax. 

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