ATM

Government To Charge Taxes On Banking Agencies, ATM Cards

 

 

The government has reached its final plans of imposing taxes on banking agencies and ATM withdrawals on all commercial banks.

According to a letter dated February 9, 2021 written by Patrick Ocailip, the deputy secretary to the treasury in the Ministry of Finance to the Governor Bank of Uganda, seeking an opinion and data not later than Friday, February 12, 2021 on the matter.

He adds that the proposed tax was reached during last week budget consultative meeting between the Ministry of Finance, Uganda Revenue Authority (URA), Uganda Communications Commission (UCC), Telecom Operators and Bank of Uganda (BoU).

“Following our budget consultative meeting held on February 5th, 2021, at this ministry of Finance which was  attended by officials from Uganda Communications Commission, Ugandan Revenue Authority, Telecom Operators and Bank of Uganda, it was proposed that we explore taxation of cash withdrawals, from commercial banks,” reads part of the letter.

Currently, mobile money withdrawals are subjected to a 0.5% excise duty while agency banking and ATM withdrawals in commercial banks are not subjected to the same tax.

“We therefore, wish to seek your opinion on the proposal and also request you to avail us with data on all categories of withdrawals for our further review and determination. We require tis date for the past three financial years (starting from FY 2017/18).” Says Patrick in his letter

According to the government, this will encourage cashless transactions and promote e-commerce, improve tax compliance in addition to raising revenue.

 

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