Fresh backlash over social media tax

The fallout over Uganda's recently introduced social media tax could intensify after Facebook warned it will hold back infrastructure investments earmarked for the country. Kojo Boakye, Africa public policy manager at Facebook, said the company has informed the Uganda Communications Commission that it will be taking their investments elsewhere. The East African reports that he added that the model on which they based their investment plan in Uganda will be affected by the tax. A study by Research ICT Solutions found that Ugandans spend a monthly average of $2.40 on voice calls, messaging and the Internet and the introduction of a monthly tax of $1.6 on the most widely used Internet option is likely to hurt players in the digital services business.

Full report in The East African