Social Media Tax Unsuccessful, Government Blames VPN Users

The social media tax that was implemented in July seeks all Ugandans to pay 200 before accessing all the social media platforms

Uganda Revenue Authority (URA) reports to have collected UGX20.5bn of the expected UGX24.9bn in the first quarter which ended in September.

David Bahati State Minister of Finance for Planning said some people are not paying OTT tax, commonly known as social media tax, but instead using VPN applications to bypass the tax which came into effect on July 1st.

Bahati also adds that they are putting in place a system that will block all VPN users

We have studied and some people are using VPN to dodge OTT…We are working on it to ensure that it’s collected.

“I’m sure that in a few months the system will stabilize and we shall see some growth on OTT tax revenue.”

 

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