The number of internet subscribers in Uganda reduced from 16 million in July to 13.5 million in September following the introduction of Over the Top (OTT) tax commonly known as social media tax in July 2018.
According to the Uganda Communications Commission report (UCC) report, the number social media tax payers also also reduced from 8.04 million in July 2018 to 6.84 million in September as Ugandans opted for Virtual Private Networks (VPN) to evade paying the the Shs 200/daily tax.
The tax introduced in the 2018/2019 financial year caused public outrage when it came into effect in July last year. Internet users are charged Shs 200 each day to access social media sites like Facebook, Twitter, WhatsApp and Instagram.
By the end of September, only 50% of internet subscribers were paying OTT according to the report. As such the amount of money collected from OTT equally dropped from Shs 5.6 billion in July to Shs 3.9 billion at the end of September.