Maria Kiwanuka, the finance minister, proclaimed the levy on all mobile money transactions, which is to be set at 10 percent of the transaction fee.
This will earn the government USD 12 million annually from this new tax, as the service is used by almost nine million subscribers from all different networks.
It is also noted that only a small percent of Ugandans have bank accounts and strongly depends on the money transfer service to send money to relatives as well as pay bills. This action by this government will have a great impact on its citizens.
The Ugandan government has also introduced a tax on inbound international calls. This, it expects will raise approximately USD 16 million per year. The taxes are however subject to parliamentary approval.
The BBC says that the Ugandan government was under pressure to raise funds in order to address a USD214 million shortfall in the annual budget after donors cut aid over accusations of corruption.