According to Bank of Uganda, agents licensed stood at 8,104 as of June 2019. And in the six months to June 30, 2019, the value of transactions processed by the active agents amounted UGX 5.74 trillion.
URA boss Doris Akol says by fewer rich people using mobile money has cost her tax revenue
Revenue Authority has decried the shift of high value Ugandans from using
mobile money services to agency banking, which has cost the country tax revenue.
the URA Commissioner General said recently that the tax body could not collect
at least Shs 30.5billion in taxes after rich individuals switched to using agency
There is currently
no tax on withdrawals through bank agents, making them cheaper than mobile money.
banking is a system where commercial banks use agents like petrol station, food
kiosks, supermarkets, pharmacy, retail shops among others to collect money
and/or help people withdraw their cash without going to the bank.
government introduced a 0.5% tax on mobile money withdraws in 2018. In addition,
with other taxes on mobile money, it has pushed some customers away from the
Akol said “…
high-value clients withdraw their funds from agency banking.”
seen mobile money transactions value on MTN, the biggest network, drop by 36%
since the introduction of the tax.
clients are adopting the use of mobile money for payment for services as
opposed to withdrawing cash,” Akol said. However, the value of transactions still going
through mobile money dwarf those done by bank agents by far.
Bank of Uganda, agents licensed stood at 8,104 as of June 2019. And in the six
months to June 30, 2019, the value of transactions processed by the active agents
amounted UGX 5.74 trillion.
money, the value of transactions was Shs 67tn in 2018/2019, a drop from Shs 73
trillion in 2017/18 financial year, the central bank says. BOU says
mobile money grew in volume but the value of transactions dropped, pointing to URA’s
claim that rich people are staying away from the platform.
money and agency banking are platforms expected to bring the unbanked populations
into the formal bankable structures.