Uganda loses 400mln USD in tax evasions by telecom companies: president

Ugandan President Yoweri Museveni on Wednesday said the east African country is losing up to 400 million U.S. dollars per year in tax evasion by telecommunication companies on incoming international calls.

Museveni, who was speaking during the delivery of the country's National Budget for next financial year 2016/17 before parliament, said the telecommunication companies lobbied the previous parliament not to allow government purchase a tracking machine.

"They make three million calls from outside, but they declare only half a million and the money is hidden," he said.

He appealed to the new parliament to allow government purchase the equipment on a private public partnership basis where an investor brings in the equipment and is paid from the recovered money.

Museveni did not mention which companies were involved.

According to the Excise Duty (Amendment) Bill 2016, operators in Uganda divert incoming calls to countries such as Kenya and South Sudan before getting routed to Uganda.

That means by the time the calls made it to Uganda; they were billed as One Network Calls.

East African countries have a One Network Area, meaning that cross border calls do not attract the excise duty charge. Endit