The government of Uganda has started taxing social media use that requires Internet service providers to block access to services until users pay a tax of 200 shillings ($0.05) per day.
Everything from Tinder to Tumblr must be blocked, according to the government decree, and ISPs allow users to make the tax payment from their mobile phones. In response to the new tax, the search term “VPN” spiked on Google in Uganda.
Following news of the sudden popularity of VPNs in Uganda, the executive director of the Uganda Communications Commission, Godfrey Mutabazi, issued a statement in which he said it is more expensive to use a VPN than to pay the tax. He also said the agency has the capabilities to block access to VPNs in the country.
Uganda blocks Social media & other OTT SERVICES.
Many have taken it to Private Secure Networks, VPN & VPS to avoid the daily ugx 200.
Daily's ago public servants, ministers privileges were increased by over 73%. Cc. @Info_Activism #IntelPostUpdates #SocialMediaTax pic.twitter.com/lsnSz3ZX4E— New Day Communications (@Newsday_Ug) July 1, 2018
“We have technology that will block the VPN services so that no one dodges the taxes. Different VPN systems continue to come with more advanced features to circumvent government crackdowns, but governments around the world have continued to block them,” said Mutabazi.
Frank Tumwebaze, the minister of IT and communications said the revenue generated through the new tax will help the government improve Internet services.
Users can pay the tax using mobile money. Ugandan telecom providers sent out a statement instructing users how to pay with mobile money using their services.
Why has the government done this?
President Museveni has spoken out about people using social media to spread gossip which he described as “opinions, prejudices, insults [and] friendly chats”.
In a letter to the finance minister in March, Mr Museveni said a social media tax could boost government revenue, and so reduce borrowing and aid money.
He added that he did not back a tax on the internet in general as this would affect its use for “educational, research or reference purposes”.
Uganda’s ICT Minister Frank Tumwebaze has also defended the tax, saying that the money raised will be used to “invest in more broadband infrastructure”.
Interestingly, Ugandans are not happy with the tax as a Uganda tech company has filed a lawsuit against the government over the new social media tax.
