EXTREME EFFICIENCY: URA’s tax collections from OTT register a surplus of UGX 8.2 billion in just 1 quarter

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EXTREME EFFICIENCY: URA's tax collections from OTT register a surplus of UGX 8.2 billion in just 1 quarter
Courtesy photo

KAMPALA- Tax collections from OTT services registered a surplus of Shs 8.2bn in the first quarter (July to September) of the 2020/21 financial year, according to URA. 

Local Excise Duty contributed a surplus of Shs 107.8bn mainly from mobile money transfers (Shs 17.52bn surplus), phone talk time (Shs 12.51bn surplus), beer (Shs 27.69bn surplus), and OTT (Shs 8.27bn surplus).  

URA says the surplus can be explained by increased transactions via phone through voice and text owing to limited movement of people amidst the COVID 19.  

A report by UCC (for April to June 2020) equally reported a 7% growth for OTT subscriptions, which increased by 700,000 cellular users, up from 10.6 million users in March 2020.

Last financial year, URA posted a shortfall in the OTT collections with only Shs 49.5bn collected against a target of Shs 284bn (only 17% collected). 

At the time, the tax body attributed the shortfall to the use of Virtual Private Networks (VPN) and Wi-Fi.

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