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The Impact of Mobile Money Taxation in Uganda
The study assesses the effects of the Mobile Money withdrawal tax on consumer behaviour and digital financial inclusion in Uganda. The study uses quantitative and qualitative methods to analyse the economic impact of the taxation on Mobile Money. The result indicates that the introduction of the tax seems to have led to many users migrating to agent banking, where no comparable taxes are applied to withdrawals. At the same time, people with lower incomes tend to have less access to agent banking, indicating that the burden of this tax does fall disproportionately on the poor.
Beyond this, the study looks at people’s perceptions about digital taxation, awareness of current mobile money fees and taxes and willingness to pay for DFS and mitigation mechanisms. Qualitative interviews with dozens of stakeholders and key informants from all sectors were conducted as part of this study, and activity-based costing with stakeholders in the most affected sectors.
- Resource type Case Study
- OrganisationUNCDF
- Year of Publication2021
- RegionAfrica
- CountryUganda
- LanguageEnglish
- Keywords digital finance, Agent Banking