MTN Uganda has announced revised mobile money rates effective July 2, because of the new tax the government has introduced on mobile transactions.
HumanIPO reported last month a tax of 10 per cent was being introduced on mobile money.
The new MTN rates increase transaction fees. For example, sending UGX4 million (US$1,500) to another mobile money registered subscriber will cost UGX2,200 (US$0.85).
Anthony Katamba, MTN Uganda’s general manager of corporate services, said the service applies on all money transfers paid by users.
“According to the new national budget 2013/2014, the 10 per cent 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,” Katamba said.
“It should be noted that the new 10 per cent levy is to be applied on all money transfer services offered in Uganda, including those offered by non-telecom operators.”
Katamba added that MTN Uganda is responsible to support the economy of Uganda with various national developments.
“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.”
Report shows that MTN Uganda increased their customers by 50 per cent during the past year.
Katamba added: “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.”