The Finance minister, Mr Matia Kasaija, has come out to tell the public to disregard information in the media that purports that there is a plan by government to start taxing cash withdrawals from banks.
Following a February 9 letter that made rounds on social media written by Patrick Ocailip, the deputy secretary to the treasury in the Ministry of Finance to the Governor Bank of Ugand where the finance ministry is seeking the Governor’s opinion on the proposal.
“Following our budget consultative meeting held on February 5, 2021 at this Ministry, attended by officials from Uganda Communications Commission, Uganda Revenue Authority, Telecom Operators and Bank of Uganda, it was proposed that we explore taxation of cash withdrawals from commercial banks,”
Asked about the contents of the letter, the Finance told journalists this morning that he had no knowledge about the information but promised to get back to the public once he gets detailed facts about the new developments from his colleagues .
“Tax on withdrawal of money? I am hearing this for the first time. Yesterday, we were talking about tax measures and I have not seen that among the tax measures. I am hearing it for the first-time,” The minister said.
The letter also says that since mobile money withdrawals are subject to 0.5% excise duty, agency banking and ATM withdrawals in commercial banks should also follow suit which has caused public outrage.