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  HomeCollaboration on International ICT Policy for East and Southern Africa (CIPESA)  /  Uganda
06Jun

Uncertainty Over How Uganda’s New Social Media Tax Will be Collected

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By Juliet Nanfuka |
On May 30, 2018, Uganda’s parliament passed the Excise Duty (Amendment) Bill 2018, which will see users of Over-The-Top (OTT) services that include messaging and voice calls via Whatsapp, Facebook, Skype and Viber pay a mandatory fee of UGX 200 (USD 0.05) per day of use. In another move that could hit affordability, stifle innovation, and undermine the role digital technologies play in socio-economic transformation, the amendment will also introduce a one percent fee on each mobile money transaction. However, it remains unclear how the tax on social media use would be collected.
The amendment bill was first introduced last April and was met with criticism over the new taxes, which many observers believe would make Information and Communication Technologies (ICT) inaccessible to majority of Ugandans. The taxes were proposed in response to a letter president Yoweri Museveni wrote to the finance ministry wherein he stated that the government needed resources “to cope with the consequences” of social media users’ “opinions, prejudices [and] insults”. Without mentioning mobile money, Museveni proposed a levy of UGX 100 (USD 0.025) per day per OTT user, but proposals by the finance ministry, since passed by parliament, doubled this figure.
Further, days after parliament passed the amendments bill, the finance minister reportedly stated that the tax rate on mobile money transactions should be 0.5% and not 1% and suggested that the bill could need revisiting.


As of September 2017, Uganda had an internet penetration rate of 48%. Meanwhile, there were 23 million mobile money subscribers in a country of 37.7 million people, and their more than 340 million transactions during the third quarter of 2017 alone totalled UGX 18.1 trillion (USD 4.7 billion).
Mobile money has been a primary avenue of financial inclusion particularly for the unbanked. According to the Bank of Uganda, in 2015, only 16% of the population had a bank point of service within one kilometre of a home, whereas 54% of the population had a mobile money point of service within one kilometre.
Meanwhile, social media has served as many users’ initial entry point to internet use in many developing countries such as Uganda. This is among the reasons why OTT packages have been popular with telecommunications companies as tools to attract more clients. Introducing taxes on the use of these platforms could therefore negatively impact local content development and civic participation tools that rely on these services.
The proposals passed by Uganda’s parliament also include raising tax on airtime on cellular, landline and public payphones from 5% to 12% and the increase on the tax on mobile money transfers from 10% to 15%. .
The passing of the bill attracted various reactions on Twitter:


In 2016, social media and mobile money services were shut down twice during the electioneering period.


As a result of the shutdown of social media platforms, Virtual Private Networks (VPNs) became popular as users sought alternative avenues to remain online. There were no alternatives for mobile money users but the impact of the shutdown was felt by mobile money service providers such as the Airtel Uganda mobile money platform which at the time was  used by around 650,000 unique users per day and processed around 30 billion Ugandan shillings (USD 8.8 million) according to FSD Uganda.
At a private sector dialogue hosted by the Collaboration on International ICT Policy in East and Southern Africa (CIPESA) a day after the passing of the bill, participants noted that the move to tax mobile money services could potentially force users to explore other alternatives for transactions, including reverting to cash or to new financial transaction models such as blockchain which is emerging as a  potential alternative avenue for financial transactions in Uganda.


According to a 2017/18 Uganda National Information Technology Survey, social media platforms including OTT services are some of the popular avenues through which civic engagement has been pursued by the state. It remains to be seen how access to government services will be incorporated in the new tax model.


With the taxation expected to come into effect as early as July 1, 2018, uncertainty remains over whether, if signed into law by the president, the tax would be executed given the limited public consultation and the absence of guidelines.

16Apr

Uganda’s Social Media Tax Threatens Internet Access, Affordability

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By Juliet Nanfuka |
Uganda’s president Yoweri Museveni has directed the finance ministry to introduce taxes on the use of social media platforms. According to him, the tax would curb gossip on networks such as WhatsApp, Skype, Viber and Twitter and potentially raise up to Uganda Shillings (UGX) 400 billion (USD 108 million) annually for the national treasury. The ministry has already proposed amendments to the Uganda Excise Duty Act, 2014 to introduce taxation of “over-the-top” (OTT) services, and raise taxes on other telecommunications services.
Section 4 of the Excise Duty (Amendment) Bill 2018, a copy of which was obtained by CIPESA, states: “A telecommunication service operator providing data used for accessing over the top services is liable to account and pay excise duty on the access to over the top services.” The amendment defines such services as the “transmission or receipt of voice or message over the internet protocol network and includes access to virtual network; but does not include educational or research sites which shall be gazetted by the Minister.”
According to the proposals, which could take effect on July 1, 2018, OTT services that commonly include messaging and voice calls via Whatsapp, Facebook, Skype and Viber will attract a tax duty of UGX 200 (USD 0.05) per user per day of access. In his letter, Museveni said the government needed resources “to cope with the consequences” of social media users’ “opinions, prejudices [and] insults”. He proposed a levy of UGX 100 (USD 0.025) per day per OTT user. Prime Minister Ruhakana Rugunda supported the suggestion as did the ICT minister, who stated that the taxes were meant to increase local content production and app innovation in Uganda.
If implemented, the proposed tax will be the latest in a series of government actions that threaten citizens’ access to the internet. Last month, the communications regulator issued a directive calling for registration of online content providers and also released tough restrictions on registration of SIM cards. At the USD 0.05 per day suggested by the finance ministry, a Ugandan user would need to fork out USD 1.5 per in monthly fees to access the OTT services. That would be hugely prohibitive since the average revenue per user (ARPU) of telecom services in Uganda stands at a lowly USD 2.5 per month.
According to the Uganda Communications Commission (UCC), in the 2016-2017 financial year, Uganda’s telecommunications sector contributed UGX 523 billion (USD 141.2 million) to national tax revenue, an increase of 14.3% from the previous year’s UGX 458 billion (USD 123.6 million).
As of September 2017, Uganda had an internet penetration rate of 48% while the mobile subscription stood at 65 lines per 100 persons. Research shows that at least one in nine internet users in the country is signed up for a social networking site, with Facebook and WhatsApp the most popular.
Indeed, social media and by extension OTT services, are key avenues for public discourse, service delivery and political engagement. As per the recently released results of the national IT survey 2017/18, 92% of MDAs have a social media presence with most using Facebook, Twitter and WhatsApp as their primary platforms for information dissemination and engagement with citizens. Meanwhile, telecommunications companies have tapped into the popularity of OTTs by offering competitive social media data packages, resulting in what was popularly referred to as “data price wars.”
The amendment bill also proposes a 12% tax for airtime on cellular, landline and public payphones. The latter two previously attracted a 5% tax. The tax on mobile money transfers has been increased from 10% to 15%, while a 1% tax has been introduced to the value of mobile money transactions of receiving and withdrawals.
The proposed taxes do little to support internet affordability in Uganda, which already scores poorly on the Affordability Drivers Index (ADI) that annually assesses communications infrastructure, access and affordability indicators. Currently, 1GB of mobile prepaid data in Uganda costs more than 15% of the average Ugandan’s monthly income. This is much higher than the recommended no more than 2% in order to enable all income groups to afford a basic broadband connection.
The proposed taxes have also raised considerable debate among members of civil society and the business sector, who are concerned that consumers will inevitably be economically affected, while the legal fraternity has called the move unconstitutional. In a country where two social media shutdowns were ordered in a space of three months during 2016, and where some social media users have been prosecuted or arrested over opinions expressed on Facebook and Twitter critical of public officials, these developments are particularly worrying. Already, the perceived high level of surveillance has forced many Ugandans including the media, into self-censorship, turning them away from discussing “sensitive” matters of community or national importance.
The increasing popularity of social media enabled OTT services, brings new regulatory challenges for governments, as many of these services have not required a licence or been required to pay any licensing fee according to the Electronic Frontier Foundation (EFF). However, the regulation of OTT platforms and services may in some cases adversely affect user rights.
On the financial inclusion front, the proposed taxes are also likely to affect mobile money subscriptions and the cost of doing business. In Uganda and across Africa, mobile money has become the primary means of financial transactions, offering new opportunities for productivity and efficiency gains to governments, businesses and individuals.
Feature photo by GotCredit
 

10Feb

CIPESA Submits Comments On The Uganda Data Protection and Privacy Bill, 2015

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Official Submission |
Article 27 of Uganda’s constitution provides for citizens’ right to privacy, however, there is no law to protect an individual’s data privacy despite the large amounts of citizen data collected by government departments and private entities on a regular basis. More concerning, is that this data is collected with no guarantee of its protection and privacy.
Some existing legislation, for instance the Computer Misuse Act, 2011 (section 18); Access to Information Act, 2005 (section 26); Uganda Communications Act, 2013 (section 79); Electronic Signatures Act, 2011 (section 81); and the Regulation of Interception of Communications Act, 2010 (section 2) prohibit unauthorised access and disclosure of information. However, the provisions in these laws are not elaborate and do not adequately protect personal data.
The publication of the draft Data Protection and Privacy Bill 2014 was therefore a milestone. Accordingly, the Collaboration on International ICT Policy for East and Southern Africa (CIPESA) submitted comments to that version of the bill. Various concerns were raised including vague wording which left the bill open to misinterpretation, unclear procedural processes for collection and retention, as well as the costs associated with accessing personal data.
More recently on , CIPESA welcomes the Parliament of Uganda’s call for submissions on the Draft Data Protection and Privacy Bill, 2015. It once again gives opportunity for stakeholders to provide input to ensure that the law, when enacted, measures up to internationally acceptable standards of data protection.
In our latest submission, we highlight some of the positive principles and provisions of the Bill. Furthermore, we indicate areas of concern and suggest amendments to ensure that if the bill is passed into law, there are sufficient safeguards to regulate the collection, storage and use of data towards upholding citizens’ right to privacy.
See the full submission made on the Uganda Data Protection and Privacy Bill, 2015 presented to the Committee on Information and Communication Technologies (ICT) in the Parliament of the Republic of Uganda

04Dec

Harnessing the Data Revolution for National Development: The Case of Uganda

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By Loyce Kyogabirwe|
The United Nations (UN) has recognised data as a key factor for achieving and monitoring sustainable development. Indeed, the push for open data that contributes to government transparency and accountability and promotes citizens’ right to information and innovation through the Information and Communication Technology (ICT) sector continues to gain prominence globally, including in Africa.
In Uganda, the government is geared towards contributing to the emerging data revolution for sustainable development. Since 2016, the country has been party to the African Charter of Statistics and is also working to implement the UN Fundamental Principles of National Official Statistics as well as the Cape Town Action Plan. Uganda has also developed the National Development Plan and is party to regional development agendas such as Agenda 2063 and the East African Community’s Vision 2050.
In tandem with the above commitments and recognition of the need for quality data that responds to the demands of development agendas, the Uganda Bureau of Statistics (UBOS) together with other development agencies hosted the country’s first High Level National Data Forum from November 14 to 17, 2017 in Kampala to reflect on how to harness the data revolution for national development.
While presenting the National Standards Indicator Framework (NSIF) at the Forum, Imelda Musana, Deputy Director of Statistical Production and Development at UBOS underscored the importance of data and statistics for actualising the NSIF as an effective tool for measuring progress and performance, informing planning and resource allocation in all government Ministries, Departments and Agencies (MDAs).
Further, Bill Anderson, Data and Information Architect at Development Initiatives (DI) reiterated the need to build sustainable and inclusive data ecosystems. “To meet national development plans and the Sustainable Development Goals (SDGs), we need to build sustainable systems that are sustainably funded to tell the story of everyone in every village” he said.
During the discussion, it was recognised that due to decentralised statistical systems and fragmented data sets, official statistics did not reflect data generated by non-state data producers including the private sector, academia, civil society and the citizens. Participants therefore called for frameworks that can allow these sources of data, who are also motivated by the data revolution, to feed into the national statistics.
Coordination, collaboration and partnerships was also pointed out as essential for a functional and inclusive data ecosystem. According to Norah Madaya, Director of Statistical Coordination Services at UBOS, partnerships are inevitable in order to minimise duplication of efforts and increase efficiency and harmonisation of programmes. However, she noted existing challenges that hinder coordination and partnerships within the data ecosystem, such as lack of institutionalised statistical structures in government agencies, inadequate commitment to factors driving coordination such as harmonised ICT platforms and resistance to joint survey undertakings.
Meanwhile, usability as a driver for the national data ecosystem was also discussed, with widespread calls for data released by government to be in easily accessible digital formats. Currently, most public information/data released by government agencies is in PDF format and does not meet open data principles as prescribed in the Open Data Charter which calls for data to be released in a format that easily accessible, reusable and allows for manipulation, among others.
On the ICT front, Kenneth Bagarukayo, from the Ministry of ICT and National Guidance noted that Uganda’s readiness for open data is hindered by lack of common data standards as well as inadequate infrastructure. As such, in 2015, the government embarked on the process of developing the Open Data Policy that will help address these challenges. A draft of the policy has been developed with priority areas focusing on open data working groups, the development of an open data portal and high value data sets. According to Bagarukayo, policy consultations have been completed and the draft policy will be presented to cabinet for approval in December 2017.
Meanwhile, efforts are also underway to build Communities of Practice (CoP) on data among civil society, private sector and public-sector organisations. One such initiative is the East Africa Community of Practice for Data Revolution and SGDs which is working to enable actors meet frequently and deliberate on best practices, challenges and experiences of their engagements on data and community at the subnational level. Development Initiatives is leading efforts in Uganda towards agreeing on a general action plan for the country’s CoP and recently held a meeting with various actors including CIPESA to discuss gaps and needs that the CoP might address to increase collaboration across the East African region.
Ultimately, the National Data Forum was a ground-breaking event which will hopefully bring the data revolution to the forefront of national debates and support awareness of the evolving data demands for measuring national, regional and international development initiatives. Discussions over the three day event rallied stakeholders to come together and support more investment in data production, analysis and use, for evidence based planning.

13Oct

Access to Public Information in Uganda: Rhetoric or Reality?

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By Loyce Kyogabirwe |
Norah Owaraga, a Ugandan researcher, recently narrated her experience on accessing government-held information in the country. She recounted a trip to Tororo district in eastern Uganda where she sought information on Tuberculosis prevalence in prisons. “I was told to go back to the prisons headquarters in Kampala (the capital) to get authorisation yet I had already received clearance from Uganda National Council for Science and Technology (UNCST) and the President’s Office to access government information. Why did I have to travel back to Kampala when I had all the clearance?” asked Owaraga.
Her question was directed at Frank Baine, the spokesperson of Uganda Prisons, during a dialogue held in Kampala to commemorate the International Day for Universal Access to Information, which falls on September 28.
In his response, Baine quoted section 4.8.1(i) of the Code of Conduct and Ethics for Uganda Public Service, 2006 and the Official Secrets Act 1964, stating that public officials are custodians of information that comes into their possession during the course of duty. “Without due permission from an authorising officer, such information cannot be communicated,” explained Baine. In Owaraga’s case, he said the authorising officer was not within the UNCST or the President’s office. Rather, it was the head of Uganda Prisons who had the mandate to authorise the release of the information.
Owaraga’s experience mirrors the challenges faced by Ugandan citizens in realising the right to access information. The right of access to information is enshrined in article 41 of the Constitution of the Republic of Uganda, 1995 which provides that, “Every citizen has a right of access to information in the possession of the state or any other organ of the state except where the release of the information is likely to interfere with the security of the state or the right to the privacy of any other person”. Uganda was among the first African countries to enact a right to information law, the Access to Information Act (ATIA), 2005 and later the Access to Information Regulations, 2011.
The ATIA is aimed at promoting transparency and accountability in all organs of the state by providing the public with timely, accessible and accurate information. Baine’s response instead highlights that a culture of secrecy still persists, with limited proactive release of information by public agencies and denial of citizens’ requests for information.
Other challenges that were raised during the dialogue include the high costs of accessing information, lack of knowledge of the provisions of ATIA among citizens and public officials, and the tedious procedures of requesting for information – all of which impact on the level of citizens’ information requests.
Despite the challenges, the government has taken some steps to promote access to public information. Speaking at the dialogue, Moses Watasa, Commissioner of Information Dissemination at the Ministry of ICT and National Guidance, explained that the Ministry is working to sensitise all government ministries, departments and agencies (MDAs) on ATIA as well as strengthening communication departments within MDAs and local governments with the aim of improving information gathering and dissemination.
Furthermore, the ministry has developed a centralised government information web portal (www.gov.go.ug), which functions as a gateway to all other government websites. The portal is reinforced by the ministry’s requirement for all MDAs to have a communications officer, functional website, a presence on social media and email addresses for officials to ensure public accessibility.
Watasa acknowledged that there has been a culture of secrecy among public officials further compounded by internal bureaucracies. He stated that the government was working to review archaic guidelines that restrict responsiveness or proactive disclosure by public officers.
Meanwhile, according to Watasa the government is also due to launch Open Government Sessions aimed at bridging the information gap between citizens and duty bearers. The sessions, which will be hosted monthly, will involve different MDAs interfacing with the public on functions, ongoing activities, budget allocations and expenditure and feedback. It is expected that the sessions will be broadcast live on TV and leverage social media platforms to allow remote participation.
However, it remains unclear when the archaic laws and guidelines will be reviewed and implemented to ease citizens’ access of public information. It is only through improved access to information that there can be increased social accountability and government transparency towards improved service delivery and greater citizen participation in governance and democratic processes.
The dialogue on access to information in Uganda was organised by the Collaboration on International ICT Policy for East and Southern Africa (CIPESA) in partnership with the Ministry of ICT and National Guidance in the context of the ICT4Democracy in East Africa initiative’s objective to engage stakeholders on supportive policies and practices for human rights and democratic governance in East Africa. It brought together 50 participants including public officials, policy makers, civil society, media, and scholars to reflect on the role of information in improving service delivery and accountability in Uganda.

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