Uganda is to apply a 10.1% tax on money transfer by cell phones and other finance transfer operators.

Global payments from Ugandans living abroad are also implied._68171498_68171493

Maria Kinwanuka (Finance Minister) said she also idea to increase $16.6m by applying a levy on incoming global phone calls.

Finance Minister had come up with techniques to plug a 215m hole in the yearly budget after donors cut aid.

Ms Kiwanuka told the MPs that in the end year $767m of worth of remittance had been got from Ugandans.

Report published in Uganda daily Newspaper, the latest mobile finance transfer tax could affect the 9m clients using 6 cell phone companies in Uganda.

The administration hopes to increase 12m yearly from the income tax, it reports.

Cell phone money transfers are very general in Uganda as many people, especially in rural places, do not have bank accounts.

Transfers are used to transfer money to friends and relatives.

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“It is very unlucky that Ugandans are being squeezed both ways, Mpagi Simon, a cell phone money agent, told the British news agency from his Kampala retail shop.”