On 1st July, Telecom companies & ISPs stopped providing free access to social media websites to their clients as the government moves to implement the OTT (Over the Top Tax) commonly termed as Social Media Tax. 
The implementation will see all internet users in the country pay a daily tax of Ugx 200 to be able to access social media platforms namely Facebook, Twitter and WhatsApp. The tax which expires at midnight has left many ugandans miserable. " Many Ugandans are “bitter” because the tax “was brought in bad faith,” said Ladislaus Rwakafuuzi, a prominent human rights lawyer.
The President in the build up to the introduction of the tax said the aim is to limit lugambo "rumor spreading" and also to phase out what he termed as the "bad" users of the platforms. Facebook which boasts of about 2.1 billion monthly active users world wide is undoubtedly the largest social media platform in the country thanks to its Facebook zero , a flagship initiative by Facebook in collaboration with mobile phone-based Internet service providers, whereby the providers waive data (bandwidth) charges (also known as zero-rate) for accessing Facebook.
The tax that is anticipated to generate over ugx 400 billions has already hit a snug as multiple users have diverted to using VPNs to overcome the social media blockage. The apps which first became famous in uganda during the internet shutdown in the 2016 elections have re-surfaced again putting into question whether the government will be able to collect the set amounts.
The other new taxes imposed along the OTT tax include the controversial 1% on mobile money transactions which the president has direct be reduced to 0.5% . The tax sees customers charged a tax on the withdrawal amounts in addition to the telecom service fees , a move that has been criticized by experts as a double taxation to people's incomes.
According to the Vivo group the managing entity of Shell Uganda, Petrol has also had a shs.100 tax imposed on it leading to the increase in fuel prices. As always the final consumer bears the burden of the tax.
Whether the taxes will be beneficial towards our country's goal towards middle economy status is a matter of time. Renown philosopher Benjamin Franklin once said "...but in this world nothing can be said to be certain, except death and taxes."

Article by Twin Philemon
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