Minister Kasaija denies plan to tax bank cash withdrawals

By Juliet Nalwooga

The Finance minister Matia Kasaija has revealed that he is not aware about the proposed tax on cash withdrawals from commercial banks.

This follows a February 9^th making rounds on social media from the treasury deputy secretary Patrick Ocailap to the Bank of Uganda governor in which he is requested to give his opinion about the proposed tax not later than Friday, February 12^th.

The governor is also requested to avail data on different categories of withdrawals for further review and determination.

According to the letter, whereas mobile money withdraws are subject to a 0.5% excise duty, at the counter, agency banking and ATM withdrawals are not subjected to the same tax.

However while addressing journalists on the sidelines of a Shs109 billion grant signing event from the Japanese government for upgrade of a maid road in Refugee hosting areas of West Nile sub region, Kasaija said he had not heard of such a tax proposal.

“Tax on withdrawal of money, I’m hearing it for the first time. I don’t know where you are picking it. Yesterday we were talking about tax measures, I have not seen it as one of the tax measures. I will check with my tax officers. I’m hearing it for the first time’’ said minister Kasaija.

Ocailap says taxing cash withdrawals will not only improve tax compliance and increase revenue but will also encourage cashless transactions which will promote e-commerce.

The proposal was reached upon during a budget consultative meeting held on February 5^th, 2021at the ministry between the Uganda communication commission, URA, Telecom operators and bank of Uganda.

Written by Noelyn Nassuuna