Innovation experts have revealed that the recently introduced 12 percent tax on internet bundles is hurting innovations and stifling e-commerce and fundamental freedoms.
In April this year, Uganda introduced a 12% tax on internet data, potentially hiking prices for online access.
The tax which replaced the 10 percent over the top tax (OTT), is said to be hurting hundreds of innovators in the country with many finding it expensive to carry on with their digital innovations.
Speaking at the launch of the 2021 Kampala Innovation week, Richard Zulu the Chairperson of Start-Up Uganda said authorities should have raised tax revenue from profits accrued from the internet advertising and other online businesses instead of the internet tax.
This was said during the launch of this years Kampala Innovation week that will take place between 8th and 26th November.
The innovation week will highlight and showcase entrepreneurs and startups already showing resilience and innovation when tackling the Covid 19 Pandemic .
Also launched were the nominations for start-up awards in different fields including agriculture, education among others.
