Slashdot Mirror


Uganda Rolls Out a 5-Cent Daily Tax To Access Social Media (time.com)

The government of Uganda is taxing social media users at a rate of 5 cents per day, which does not include the usual data fees. "The tax on users of sites such as Facebook was first proposed by long-time leader Yoweri Museveni, who complained of online gossip in a March letter that urged finance minister to raise money 'to cope with the consequences,'" reports Time. From the report: Service providers, including regional telecommunications giant MTN, said in a joint statement Sunday that starting July 1 the levy would be charged on "Over The Top services," including access to websites such as Instagram, Twitter and LinkedIn. The tax will be deducted by service providers that will then pay to the government revenue service. Amnesty International urged Ugandan authorities to scrap the tax, calling it "a clear attempt to undermine the right to freedom of expression" in the East African country. From the social media levy the government hopes to collect about Shs400 billion (about $100 million) in the current financial year.

77 comments

  1. Obligatory by pr0t0 · · Score: 4, Funny

    Uganda be kidding me!

    --
    I'm sorry, but your opinion seems to be wrong.
    1. Re:Obligatory by Anonymous Coward · · Score: 1

      Wow, it looks like reddit is leaking

  2. That's a massive tax by Richard_at_work · · Score: 5, Informative

    Bear in mind that many places in rural Uganda have shops where you can buy phone top ups for the local currency equivalent of 25 cents, 5 cent tax per day is a *massive* tax for a lot of Ugandans.

    1. Re:That's a massive tax by Anonymous Coward · · Score: 2, Insightful

      Bear in mind that many places in rural Uganda have shops where you can buy phone top ups for the local currency equivalent of 25 cents, 5 cent tax per day is a *massive* tax for a lot of Ugandans.

      I'm going to advance the hypothesis that Uganda will soon see a massive boom in VPN network use.

    2. Re:That's a massive tax by guruevi · · Score: 5, Insightful

      I'm sure Ugandans are willing to pay a $15 monthly fee to avoid a $1.5 monthly tax

      --
      Custom electronics and digital signage for your business: www.evcircuits.com
    3. Re:That's a massive tax by infolation · · Score: 4, Interesting

      I'm going to advance the hypothesis that Uganda will soon see a massive boom in VPN network use.

      The Ugandan government is way ahead of you and already blocking VPNs.

    4. Re:That's a massive tax by Anonymous Coward · · Score: 0

      In the West tax will be the weapon. Removing anonymity is the goal.

      Watch out for the demands that every bit of computer hardware contain a hardware TPM - and that hardware cannot be bought by cash. In particular watch out for the stuff like Intel's management engine. That's the trojan horse for the government to walk into any PC - and to carve out a piece of it for monitoring and taxing.

    5. Re:That's a massive tax by Anonymous Coward · · Score: 1

      Yes, the Tor browser is more likely to become super popular though,

    6. Re:That's a massive tax by Anonymous Coward · · Score: 0

      Deh know da wey.

    7. Re:That's a massive tax by Anonymous Coward · · Score: 1

      Indeed. While it's equivalent to US$1.50 a month if you convert according to exchange rates, if you calculate in terms of median income instead then it's actually approximately equivalent to US$395 a month.

    8. Re: That's a massive tax by Anonymous Coward · · Score: 0

      On T-mobile, data is nominally unlimited, but tethering and hd streaming is limited. How do they stop you from using a VPN to sidestep those limits? By classifying VPN (and other 'opaque' encrypted data) traffic as 'tethering' & counting it against your limit.

    9. Re: That's a massive tax by Anonymous Coward · · Score: 0

      No they don't. T-Mobile checks for tethering by looking at the TTL of your packets. It doesn't flag VPN traffic in general as tethering. Otherwise you'd have all https traffic flagged without Great Firewall level deep packet inspection, since practically all road warrior type VPN setups are TLS-based now.

    10. Re:That's a massive tax by fisted · · Score: 1

      Is TFA (I can't access it) talking about USD cents or Ush cents though?

    11. Re:That's a massive tax by Anonymous Coward · · Score: 0

      $1.5 for LinkdIn
      plus
      $1.5 for Twitter
      plus
      $1.5 for Facebood
      plus
      $1.5 for Instagram
      plus
      As it is collected by each service, it could be a LOT more than a few dollars a month!

      What is the maximum per individual?
      Does this ONLY apply on days a user logs in or just for having an account?
      Does this apply to EVERYBODY in Uganda including tourists?
      Does this apply to all Ugandans everywhere in the world?

    12. Re:That's a massive tax by Anonymous Coward · · Score: 0

      It's for their own good. Social media is destroying the rest of us.

    13. Re:That's a massive tax by SirMasterboy · · Score: 1

      So if I rent a random small-time cheap VPS and install OpenVPN on it and connect through there they will somehow block it? What about if I run OpenVPN on an AWS instance? Are they blocking that? What if I use a socks proxy instead of OpenVPN?

    14. Re:That's a massive tax by infolation · · Score: 1

      So if I rent a random small-time cheap VPS

      Your idea of cheap is not Ugandan idea of cheap. The Ugandans are turning to VPNs to avoid a $0.05 per day tax because the average wage is $1 per day. A 'cheap' VPS is about $5 per month.

    15. Re:That's a massive tax by SirMasterboy · · Score: 1

      Eh, I was really comparing to people talking about VPNs which aren't cheap either.

      To be fair though, you can get a VPS for $1 per month ($12 for a year) that is more than sufficient for OpenVPN or a SOCKS proxy.

      https://www.umaxhosting.com/ma...

      Technically this is cheaper than 5 cents per day too ($18.25 per year), but probably not worth the effort for most people for the $6.25 savings per year? Though if their income is $365 a year maybe it is worth it.

    16. Re:That's a massive tax by dkman · · Score: 1

      But that can add up if 20 people can use your VPS

      --
      I refuse to sign
  3. VPN's by hawguy · · Score: 1

    The tax will be deducted by service providers

    I predict that most of the revenue they are expecting will be going to foreign (i.e. non-tax-collecting) VPN providers.

    1. Re:VPN's by Anonymous Coward · · Score: 1

      Hmm let's see. 5 cents a day, 31 days maximum a month. $1.55 a month in taxes.
      What kind of VPN service can you get that costs less than $1.55 a month?

  4. Freedom of expression by Anonymous Coward · · Score: 0

    Freedom of expression is being threatened all over the world. Uganda seems like a relatively easy target to center out, but is by no means the biggest offender.

  5. If one wants to tax social media by Anonymous Coward · · Score: 2, Interesting

    One must first define social media.

    1. Re:If one wants to tax social media by fibonacci8 · · Score: 1

      One must first define social media.

      social media: websites/associated apps whose owners' primary purpose is microtransaction level identity theft.

      --
      Inheritance is the sincerest form of nepotism.
    2. Re:If one wants to tax social media by Anonymous Coward · · Score: 0

      The internet. Social media is what ordinary people use the internet for. This is a sensationalist story about a telecommunications tax. You fell for the bait like a sucker.

    3. Re:If one wants to tax social media by ChatHuant · · Score: 1

      One must first define social media.

      Social media: a website where people may find criticism of the Ugandan government.

  6. I think most ISPs by oldgraybeard · · Score: 1

    Will just charge all accounts and figure out a way to track access to listed sites and then just keep the difference.

    Just my 2 cents ;)

  7. Silly Question regarding information and privacy by tensigh · · Score: 2

    Am I the only one who sees a "pay-as-you-go-model" like this as a result of the new privacy restrictions being imposed by the EU and state of California? The model of this story is a tax, but if advertisers can't find their targets and start withdrawing ads, does anyone else think sites like FB or Instagram might use something like this? Just a question.

  8. Translation by jimbrooking · · Score: 2

    "Freedom of expression" --> "We need free access to feed you our ads/propaganda"

    In the US they ought to charge at least a dollar a minute to compensate you for consuming their bullshit.

    1. Re:Translation by Anonymous Coward · · Score: 0

      "Freedom of expression" --> "We need free access to feed you our ads/propaganda"

      In the US they ought to charge at least a dollar a minute to compensate you for consuming their bullshit.

      I want it all banned. No third party ads, period. Most web pages can be simple clean images plus text and links. Adds can be hosted by the parent web site. Nothing ever targeted. Scripting should be minimized.

      Pages shouldn't take 20 seconds to load on a 100BT connection, but sadly we consume so much crap with every page that they do.

      Of course it isn't going to happen. It be nice to do something about propaganda though. Instead you get the propaganda party going ape shit over some third party walmart seller selling Impeach 45 clothing, and that is flat out freedom of speech. (Other walmart sellers sold pro trump stuff.)

      Orwell once wrote:
      The party told you to reject the evidence of your eyes and ears. It was their final, most essential command... and if all others accepted the lie, which the party imposed, if all records told the same tale, then the lie passed into history and became truth" 1984 - George Orwell

  9. Do you know de wey by Snufu · · Score: 0

    to avoid dees tax, my brudda?

  10. Excellent by Anonymous Coward · · Score: 4, Interesting

    This is giving US ISPs a case to stand on for when they decide to charge users for specific services they want to access now that Net Neutrality is gone.

  11. ...or a free privacy upgrade by Roger+W+Moore · · Score: 1

    That depends on how you look at it. If they use a firewall to block your connection from being able to access Facebook, Twitter etc. if you don't pay the tax then it's a free privacy upgrade.

  12. Apply this worldwide. by Anonymous Coward · · Score: 1

    To be fair, if tobacco and alcohol are taxed because of the effects they have on society... then social media is no exception, it is just as much of a damaging drug that effects people psychologically. Social media, facebook in particular is damaging to self-esteem, confidence, and general mental health.

    1. Re:Apply this worldwide. by Anonymous Coward · · Score: 1

      To be fair, if tobacco and alcohol are taxed because of the effects they have on society... then social media is no exception, it is just as much of a damaging drug that effects people psychologically. Social media, facebook in particular is damaging to self-esteem, confidence, and general mental health.

      Tobacco and alcohol are specially taxed for two reasons in no particular order: to placate the moral busybodies who get their jollies from telling other people how to live (it's as good as it gets for them because prohibition doesn't work), and to pad the state's revenue by more heavily taxing for "moral reasons" ("sin taxes") products that lots of people are going to use anyway. The former is an amazingly powerful force in (at least, USA) politics and the latter is simply more tax revenue for a politically excusable reason, something every government desires anyway for any available reason.

      It only has to be a little better than all of the incentives of creating a black market and all of the risks involved in buying from one in order to work.

      How to solve a great many problems and drastically reduce crime/prison population? Apply this to all drugs. Prohibiton never worked and this was never special for alcohol. The only reason it was never seriously tried for tobacco outright is that you can't really get high off tobacco. And, I suspect, governments like the population control aspect of tobacco use -- someone who dies of a smoking related illness is someone who paid into programs like Social Security but doesn't live to collect as much as a healthy person, keeping the scheme afloat a bit longer, meanwhile the health care expenses are shifted to a private insurance or paid out of pocket.

      You have to understand, governments are run by sociopaths.

    2. Re:Apply this worldwide. by Bert64 · · Score: 2

      Many countries have nationalised healthcare, where the costs of alcohol/tobacco related health issues are supposed to be paid for by the taxes on those products...

      --
      http://spamdecoy.net - free throwaway anonymous email - avoid spam!
    3. Re:Apply this worldwide. by tehcyder · · Score: 1

      Many countries have nationalised healthcare, where the costs of alcohol/tobacco related health issues are supposed to be paid for by the taxes on those products...

      To which the US libertarians say "well you shouldn't have nationalised healthcare in the first place..."

      It's classical utilitarian liberalism versus absolute individualistic freedom.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    4. Re: Apply this worldwide. by Bing+Tsher+E · · Score: 1

      you can't really get high off tobacco.

      You've got to be kidding. If you're a regular smoker, you are correct. But a non-smoker can gwt one hell of a buzz, and it's a pleasant one, smoking once or twice a month. When I smoke my tobacco pipe a few days in row the craving surfaces and I know it''s time to lay off for at least week or two. But the buzz once in awhile is rather nice.

    5. Re:Apply this worldwide. by FlamingGuts · · Score: 1

      So are clothing ads, youth sports, standardized tests, etc. Everything can be "damaging to self-esteem, confidence, and general mental health."

  13. Good. Social media has little redeeming value by schwit1 · · Score: 2

    It strips your privacy in exchange for a false sense of belonging.

    1. Re:Good. Social media has little redeeming value by Anonymous Coward · · Score: 0

      It strips your privacy in exchange for a false sense of belonging.

      Chances are I hate the social media monster machine at least as much as you do, but I think this is a bad precedent. New government powers are always first aimed at targets which are either unpopular or (in this case) easily justifiable. They expand from there. While today it's social media, the precedent can easily be expanded bit-by-bit over time to encompass nearly anything, including things that are actually beneficial but happen not to align with the interests of powerful/monied people.

      Nothing short of a massive rejection of social media at the individual level is going to kill the beast. This is just an excuse for government to find one more thing to control. If they wanted to pretend to do a good thing, the government of Uganda would enforce strict privacy regulations that are favorable to individual users and hostile to social media platforms. If social media were treated like a drug, this would be known as a harm reduction strategy.

    2. Re:Good. Social media has little redeeming value by tehcyder · · Score: 2

      It strips your privacy in exchange for a false sense of belonging.

      Yes, we really should repeal all the laws making it compulsory to use social media 24/7.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  14. DPI hardware subsidy by Anonymous Coward · · Score: 0

    It's not like those Narus machines pay for themselves...

  15. Re:Silly Question regarding information and privac by Anonymous Coward · · Score: 0

    Yes. Starting February 31st 2019, every website on the Internet will collect a 5 cent per hour fee.

  16. Re:creimer is fat and a gay by CaptainDork · · Score: 2

    So your boyfriend is fat.

    Who cares?

    --
    It little behooves the best of us to comment on the rest of us.
  17. Ugandans make roughly 3 dollars a year. by Anonymous Coward · · Score: 0

    This is a huge tax for them!

  18. 'to cope with the consequences' by SylvesterTheCat · · Score: 1

    "The tax on users of sites such as Facebook was first proposed by long-time leader Yoweri Museveni, who complained of online gossip in a March letter that urged finance minister to raise money 'to cope with the consequences'"

    So.... exactly how will the government of Uganda use the revenue raised from the tax to "to cope with the consequences?"
    Perhaps to identify those who do not think like the government to "re-educate" them?

    1. Re:'to cope with the consequences' by Anonymous Coward · · Score: 0

      Pad the bank accounts of officials who might lose their jobs.

  19. For just $.05/day you can feed a starving Ugandan by Anonymous Coward · · Score: 0

    ...but really you better make that 10 cents, because we both know they'll immediately blow all their food money to feed their twitter addiction otherwise.

  20. How do they plan to block social media? by Anonymous Coward · · Score: 0

    How does the government plan to block "social media" for those unwilling to pay the tax? Is it some sort of opt-in thing?

    Who decides what qualifies as "social media"? I recall reading somewhere recently that kids are leaving the likes of Facebook for YouTube, of all places. Never in my wildest dreams would I have classified YouTube as social media.

    1. Re:How do they plan to block social media? by AHuxley · · Score: 1

      Re "How does the government plan to block "social media" for those unwilling to pay the tax?"
      HTTPS cant hide from a telco and a contractor offering police/mil/gov deep packet inspection.
      Discovery is not hard work in 2018.
      Who decides what qualifies as "social media"?
      A government can do that, just like with any other tax rate.

      --
      Domestic spying is now "Benign Information Gathering"
  21. If you can tax it... by Arzaboa · · Score: 2

    This is about the equivalent of a soda tax.

    Both sugar and the internet can make one unhealthy.

    One man's vice is another man's revenue stream.

    --
    "Look on the bright side, it'll be dark soon." -- Midnight Sun

    1. Re:If you can tax it... by Anonymous Coward · · Score: 4, Informative

      This is about the equivalent of a soda tax.

      Both sugar and the internet can make one unhealthy.

      One man's vice is another man's revenue stream.

      --
      "Look on the bright side, it'll be dark soon." -- Midnight Sun

      The funny thing is, if governments really want to reduce sugar consumption they can simply stop subsidizing sugar (and especially corn sugar/corn syrup) production.

    2. Re:If you can tax it... by Anonymous Coward · · Score: 0

      They don't want to. Long ago, most governments were converted into City of London "corporations" - their primary purpose being revenue streams.

      Look at Canada's "legalization" or marijuana. While marijuana was "legalized" already as a type 1 scheduled substance, they changing it's legal status to make it a revenue stream. They've been planning it a long time: the machinations, the cover stories and so on. All manner of politicians were buying up stock in the few ingratiated companies they planned in advance would be approved, while at the same time they went on a major arresting spree to destroy the owners of any startup and preclude them from the pie.

      Now , pretending to be the enlightened ones, they are foisting their money making scheme on the public.

        Do they care if people smoke too much? No. If children will now have easier access? No.

      What they will have though, is a new revenue stream.

      But will fewer people go to jail?

      It might make casual consumption safer from attack by government, but there will be all manner of regulations vis à vis distribution. For now though, we have a wait and see situation.

      My point? If you are concerned about too much sugar, drink less soda pop? 'Have an iced tea instead? Swap out chocolate bars for a nice cucumber sandwich? lol

  22. Re: Silly Question regarding information and priva by Anonymous Coward · · Score: 0

    No one watches Facebook's ads. They make all their money fun selling survey data to repressive governments.

  23. Allo dere by Hognoxious · · Score: 1

    I just been on the Air Ministry roof, an it pissin' down wit' rain.

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  24. Havoc by America social media monopoly by Anonymous Coward · · Score: 0

    this is the havoc and dangers they create by moving into your country. Eventually that money will end up in their pockets, and that's not where it needs to be.

  25. Deh know da Wey by Anonymous Coward · · Score: 0

    Clearly deh know da Wey.

  26. How will anyone avoid paying the tax ? by Alain+Williams · · Score: 2

    Given that most web pages these days contain links to SM (Facebook, Twitter, ...) often a link to the SM logo or a bit of javascript. So the person might not knowingly have anything to do with SM but I suspect that their browser downloading these small components will be seen as access to SM and so trigger the day's tax. Now that HTTPS is pervasive it is not possible to determine *what* is being accessed within a web site.

    The only way that people are going to be able to avoid this is by installing browser plugins like request policy - which, in itself, is no bad thing.

    1. Re:How will anyone avoid paying the tax ? by Anonymous Coward · · Score: 0

      >Now that HTTPS is pervasive it is not possible to determine *what* is being accessed within a web site.

      Your DNS queries aren't encrypted unless you take special provisions which are going to be unavailable to most people, especially internet users who access it via their phones. Of the 22% percent of the Ugandan population that has access to the internet, the majority do so over their phones. The few that access social media over their computers are simply going to get rate increases from their ISPs to cover the tax. For them, it won't matter if they encrypt or not, they are still going to be taxed.

  27. They do not know de wei by Anonymous Coward · · Score: 0

    My brudda, how will you eva find de queen without de social media?

  28. Dey Eat Da Poo Poo by Anonymous Coward · · Score: 0

    Uganda need to adjust your perceptions.

  29. Re:It doesn't sound so bad by Anonymous Coward · · Score: 0

    You have to pay taxes for water, food, shelter, and those things are essential to living. Why not tax some non-essential activity that overall probably has a detrimental effect to a nation's productivity and social cohesion. The vast majority of social media users do not use those platforms for producing or consuming political speech, so AI's complaint is rather thin.

  30. Re:creimer is fat and a gay by CaptainDork · · Score: 1

    Yeah, I want you to have my babies. I'm jelly, bro.

    --
    It little behooves the best of us to comment on the rest of us.
  31. Corporatist Lobbying for Profit by BeanThere · · Score: 1

    The mobile cartels lobbied for this to help protect their profits; from another source: "The Ugandan government has implemented a law forcing mobile users to pay taxes to use mobile money and social media apps like Facebook, Twitter, Instagram, WhatsApp, and Skype" ... basically the mobile providers are unhappy that users are able to send messages to each other at very low cost using the data network over FB messenger, WhatsApp, Skype etc., where in the past they used to be able to charge exorbitant rates if those same messages were sent as SMS.

  32. So, when are we going to see this in the US? by supremebob · · Score: 1

    As someone who lives in a US "Blue" state that's rarely seen a tax increase plan that they didn't like, I have to wonder when our tax department will attempt something similar here.

    Hell... we already have a 1% "data services" tax on things like Netflix and iCloud, and we are supposed to be paying a "use tax" on any retail sites that aren't currently collecting state income tax on their sales.

    I think that they only reason that they haven't tried taxing social media sites next is because most of them are incorporated in states where it would make it more difficult to collect the revenue.

  33. Uganda ott by Anonymous Coward · · Score: 0

    I happen to be a Telecom operator in Uganda and here are some facts:

    * The tax is on "over the top" services. Aka, anything you can communicate with outside the telephone system. This includes the typical things, but also includes any app with messaging (I jokingly asked the tax authority if he was going to pay for his Grindr account. Also includes Uber, Skype, etc.)

    * The tax was implemented to "stop gossip". Basically, to punish Twitter uses for talking bad about the government... Or to create a small barrier to entry.

    * The tax is per device, per location. So my mobile phone that connects to home internet, 4g, and work internet means I have to pay 3 times. If I only use 4g, I pay once.

    * We've been commanded to block VPN access through Port blocking. Unless the individual device pays for ott access.

    * Corporations must be compliant with operators' requests by providing access to the operator to show monitoring for number of users do they can be charged back.

    * We estimate this will generate$1.2b usd in annual revenues. Essentially covering the shortfall in the 2017/18 annual budget. I bet at least 50% will be siphoned away due to corruption.

    * Internet is still expensive here. Residential rates are about $200/Mbps. And commercial is about $100/Mbps if you buy 50+Mbps most people buy bundles meaning 1GB for about $0.50.

    * The bigger issue is mobile money tax. To receive mobile money (nearly everyone has bank accounts in their phone linked to the telco), you have to pay 0.5% of the transaction. That's in addition to the telco fees and taxes on those. Basically, to deposit/send/withdraw 1m UGX (about$300 usd), it costs about 42k UGX (about $13 usd) due to all of the fees and taxes.

    So yeah.