Finance

URA eyes more revenue on Mobile Money, Bank agents, in new tax regime

According to URA Commissioner General John Musinguzi, many banking and mobile money agents aren’t registered for taxes.

KAMPALA, UGANDA: The Uganda Revenue Authority (URA) has asked Bank of Uganda to compel commercial banks and mobile money companies to publish lists of their agents to enable effective tax collection.

According to URA Commissioner General John Musinguzi, many banking and mobile money agents aren’t registered for taxes.

“In a bid to ensure tax compliance, we appeal to you to ensure that all commercial banks and mobile money financial service providers operating digital wallets register for taxes in accordance with the law and require them to regularly publish and update the lists of their banking and mobile money agents on their websites,” Mr Musinguzi letter dated February 23, 2023, reads in part.

Musinguzi said their analysis of the banking and mobile money financial services has found out that many agents aren’t registered for taxes.

Mobile money agents are supposed to earn a commission per transaction they make. The URA takes six per cent on each commission transacted as withdrawing tax. Financial agencies collect the money and remit it to the tax collectors.

URA Assistant Commissioner for Public Corporate Affairs Ibrahim Bbosa said some tax agents don’t have TIN numbers and yet the tax body needs to know the person for whom the financial service provider is withdrawing tax for proper accountability.

Mr Richard Yego, MTN Mobile Money Chief Executive Officer, promised to comply with the URA directive.

“We have been withdrawing. It is just we have not been attaching the TIN (Tax Identification Number)….,” Mr Yego said adding that before it was not a requirement.

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