ManyaGuide Mobile money tax in Uganda explained – the 0.5% withdrawal levy
Quick answer
0.5% of what you withdraw — UGX 500 per UGX 100,000. Sending, receiving and paying bills are not taxed.
Checked 4 November 2026
Uganda charges an excise duty on mobile money withdrawals. Here's exactly how it works.
How much is the mobile money tax?
- 0.5% of the amount you withdraw from an agent.
- Sending, receiving, paying bills and buying airtime are not subject to this 0.5% levy.
- The withdrawal fee charged by MTN or Airtel also carries a 15% excise duty.
Worked examples
| You withdraw (UGX) | 0.5% tax (UGX) |
|---|---|
| 50,000 | 250 |
| 100,000 | 500 |
| 500,000 | 2,500 |
| 1,000,000 | 5,000 |
This is in addition to the network's withdrawal fee. Use our calculator.
History and latest news
- July 2018: 1% tax introduced on all mobile money transactions – it was widely opposed.
- It was later cut to 0.5% on withdrawals only.
- April 2026: a proposal to halve it to 0.25% (and MTN/Airtel's request for a UGX 5,000 cap) was not adopted. The 0.5% rate stays for FY2026/27.
Frequently asked questions
Do I pay tax when I send mobile money?
No, only when you withdraw cash.
How do I avoid the mobile money withdrawal tax?
Pay directly with MoMoPay or Airtel Money Pay, or pay bills from your wallet instead of withdrawing cash.
Fees and codes change. Spotted something out of date? Tell us.