There and Back Again: The Making of Uganda’s Mobile Money Tax

Authors: Adrienne Lees & Doris Akol
Publisher: ICTD
Date: October 2021

Abstract:

Research in Brief 72

Mobile money is widely seen as a powerful tool for enhancing financial inclusion and, potentially, improving the economic well-being of the poor.

As the mobile money sector, and its turnover, have grown, certain governments have increasingly viewed mobile money transactions as a potentially convenient tax handle.

The resulting tax measures are often controversial and draw sharp criticism from those who fear that they will undermine the growth of digital financial services.

The case study of Uganda highlights an interesting example of this trend and demonstrates the importance of careful tax policy design.