Uganda: Govt seeks to tax cash withdrawals from banks

The government is considering taxing cash withdrawals from commercial banks, according to a leaked letter seen by this newspaper.

"Following our budget consultative meeting held on February 5th, 2021, at this ministry [of Finance] attended by officials from Uganda Communications Commission, Ugandan Revenue Authority, Telecom Operators and Bank of Uganda, it was proposed that we explore taxation of cash withdrawals, from commercial banks," the letter written by Patrick Ocailip, the deputy secretary to the treasury in ministry of Finance, said. The letter is addressed to the Governor, Bank of Uganda.

In it, Ocailip further tells the Governor, that the ministry wishes to seek his opinion on the proposal, and requests that he also avails data on different categories of withdrawals for further review and determination.

The letter was written on February 9th.

This article was originally published by the Monitor. [Photo: Courtesy]