MTN Uganda data bundle prices to remain unchanged

By Our Reporter

MTN Uganda has announced that their data bundle prices will remain unchanged despite the newly introduced 12% tax on the internet.

The new tax which became effective starting July 1st, 2021 follows the passing of the Excise Duty (Amendment) Bill 2021 by the Parliament of Uganda on April 29th, 2021. With the new tax, the Over the Top (OTT) tax of UGX 200 per day has been repealed.

In a statement released on Thursday, the telco revealed that their customers can now access the internet and all social media platforms without paying OTT, also adding that their voice and data bundles remain unchanged.

“MTN Uganda informs its esteemed customers that following the coming in force of the Excise Duty (Amendment) Act 2021, on July 1, 2021, Over the Top (OTT) tax of UGX 200 per day has been repealed,” the statement reads.

It further states that, “accordingly, all customers can now access the internet and all social media platforms without paying the said tax. All OTT tax-inclusive data bundles have been discontinued. All other standardised and customised voice and data bundles remain unchanged and are accessible on all our platforms by dialling *150#.”

“We believe that everyone deserves the benefits of a modern, connected life.” It concluded.

OTT was first introduced in 2018 amid nationwide uproar and protests. In July 2019, the government had collected only Shs49.5 billion out of the targeted Shs284 billion from OTT for Financial Year 2018/2019, a shortfall of 83 per cent. The shortfall was attributed to Ugandans resorting to Virtual Private Networks (VPNs) to avoid the tax.