Reports that the government plans to tax bank withdrawals has caused uproar on social media with many bashing the alleged move.
A letter purportedly from the Finance Ministry has been circulating on social media with an alleged plan by government to tax withdrawals.
“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,” the letter reads in part.
However, Finance Minister, Matia Kasaija, has denied any knowledge of the matter saying ii is the first time he is hearing of it.
“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,” Kasaija told local press.
According to the letter written by Patrick Ocailip, the deputy secretary to the treasury in the Ministry of Finance to the Governor Bank of Uganda, and quoting a meeting between the Finance Ministry, Uganda Communications Commission (UCC), Uganda Revenue Authority (URA) and Bank Of Uganda, it sought clarification on a proposal in the same meeting to impose tax on cash withdrawals from Commercial Banks.
