FDC Calls for Reduction in Mobile Money Withdrawal Tax

What the report says

The Forum for Democratic Change (FDC) is urging the Ugandan government to lower the excise duty on mobile money withdrawals, saying the current levy raises the cost of accessing cash and discourages digital payments. The party raised the issue at a media briefing in Kampala on Monday, with FDC Vice Chairperson Robert Centenary arguing that the same income is being taxed multiple times as it moves from salaries to mobile wallets and then into everyday spending.

According to the report published by Nile Post, the FDC says the burden is heaviest on workers, small businesses and mobile money agents. The party says the 0.5 percent withdrawal charge, together with tax on the service fee, increases costs for users and cuts into agents’ earnings. It also argues that some customers are shifting back to cash to avoid the charges, which could reduce transaction volumes for agents and limit the use of mobile money in daily commerce.

The opposition party further said the tax could weaken financial inclusion, especially for people who rely on mobile money because they have limited access to traditional banking. It also criticised the government for keeping the current rate in the 2026/27 financial year, noting that an earlier proposal had considered a lower rate. Beyond the immediate tax dispute, the debate reflects a broader policy tension in Uganda between raising public revenue and keeping digital financial services affordable for households and small enterprises.