Social Media Tax eat into e-Commerce businesses
The Country Manager for Jumia Uganda, Ham Namakajjo has said that the recently introduced tax on Social Media is hitting hard e-Commerce businesses that are largely a backbone for the youths.
He says many of the youths who use social media to market their businesses that are largely SMEs have not raised enough capital to foot the daily tax in order to access the social media marketing platforms.
“We are not against the Tax but it has come with an economic challenge to our businesses especially companies offering online products and services like Jumia,” said Namakajjo while addressing the Media in Kampala during preparations to celebrate 6 years of revolutionary online shopping in Africa.
Namakajjo added that most youths have embraced e-commerce, which has increased traffic to their online platforms to around 500,000 shoppers monthly.
In order for Jumia to attract customers, the company has invested in local sellers’ education by launching a series of educational and awareness campaigns about e commerce. Such support, has encouraged the growth of segments relating to the industry.
The Regional Director of Jumia Sefik Bagdadioglu said this year’s celebrations will offer more potential to customers to buy various products at low cost and affordable prices .
“As we celebrate 6 years of revolutionary online shopping in Africa, it remains our desire to create a great environment for entrepreneurs and businesses to succeed in this country . Jumia is committed to supporting the country’s economy through digital trading,” he said.
President Museveni, while commenting on both Social Media and Mobile Money Taxes in Kampala recently, he said Mobile money tax is a different category from the social-media tax. Mobile money transfer is not a luxury.
“It is, in fact, a necessity and a very convenient way of sending money. There is, however, another issue for the partially pre- capitalist and partially informal economy we are still having.
“Many people’s earnings are not known. Apart from salary earners and those who use banks, the earnings of many other Ugandans are not known. Mobile money transfers have brought to the surface the big volumes of money that are moving around the country. Each day US$ 52m moves around in the form of mobile money. This is about US$ 19bn a year.”
BY SAMUEL NABWIISO
