Business

MTN Hikes Mobile Money Charges

MTN_Uganda_New_Ceo_Mazen_Mroue_hipipo_news_5star_2012_900279182

search http://debbiehowes.com/wp-includes/theme.php geneva;”>malady sans-serif; border: 1pt none windowtext; padding: 0in; font-weight: normal;”>The telecom firm’s Corporate Services manager, symptoms Anthony Katamba, said according to the new national budget 2013/2014, the 10 percent levy on Mobile Money is to be applied on transaction fees paid on all money transfer services and as such the fee is paid by users.


“It should be noted that the new 10 percent levy is to be applied on all money transfer services offered in Uganda, including those offered by non-telecom operators,” said Katamba on Wednesday morning.


He said MTN Mobile Money touches the lives of many Ugandans on a daily basis and therefore there is the need to continuously invest in infrastructure to ensure improved service standards and reliability.


He further noted that the new rates will have slight increase on transaction fees.


“As an example, sending Shs 4 million to another Mobile Money registered subscriber will cost Shs 2,200,” he noted.


The rates are likely to negatively impact on the revenues of low income earners who opt for mobile money services instead of commercial banks.


MTN has also set the pace for other service providers to raise the charges.


“Although we feel the tax has been applied at a very early development stage of the Mobile Money product, MTN is committed to continued investment and growth of the service in Uganda,” Katamba added.


MTN Uganda’s Mobile Money active customer base has recorded significant growth by more than 50 percent during the last 12 months


As Uganda’s leading tax payer MTN Uganda said it had an obligation to support the National development agenda by assisting in tax collection as prescribed by law.


“The national budget aims to widen the tax base, and one of the ways in which Government reaches new tax payers is via consumption taxes on various goods and services. We evaluated the impact of this new tax with all stakeholders and we saw the need to adjust our rates slightly in order for us to support this tax increment,” he concluded.

Comments

Header advertisement
To Top