Economists have raised concerns over proposed taxes on mobile money withdrawals, warning they could undermine the growth of digital payments.
The earlier proposal introducing a 0.25% tax on all cash withdrawals, including bank and ATM transactions, was dropped following public and business pushback. However, the existing 0.5% levy on mobile money withdrawals remains in place, continuing to affect liquidity for small enterprises.
The Federation of Small and Medium Enterprises says the current tax regime could significantly impact operating costs, cash flow, and profitability for micro, small, and medium businesses across the country.
The post WITHDRAWAL TAX DEBATE: SME FED – 0.5% levy strains cash flow & profits first appeared on NTV Uganda.
