The use of Virtual Private Networks (VPNs) to bypass a new social media tax by Ugandans has attracted the attention of Uganda Communications Commission (UCC). UCC said in a statement that, “We have technology that will block the VPN services so that no one dodges the taxes…We have all the systems needed to block the virtual private networks already here and the government will move anytime to effect it”.
According to the new Excise Duty (Amendment) Bill, people using any of the popular social platforms and Over-the-Top (OTT) services, including WhatsApp, Facebook, Twitter, Skype etc. will pay a daily tax of 5cents. The government has also issued a directive, saying that mobile payments can only be made using approved platforms.
The move to tax social media usage said to be an attempt to curb ‘gossip’ and raise revenues, has been hugely unpopular with the country’s youth, who use online services to not only stay in touch with their friends and family but also for mobile payments. The government, however, has argued that the tax will be used for educational, research or reference purposes. The additional revenues will also apparently help the country in paying off its growing national debt.
