By Brenda Chipo
MTN Uganda has urged the Parliament of Uganda to reduce or remove import duties on entry-level smartphones, arguing that high taxation is slowing down digital transformation in the country.
The telecom giant says that while mobile phones have become essential tools for communication, business, and access to digital services, many Ugandans—especially low-income earners—cannot afford smartphones.
Appearing before the Parliamentary Budget Committee chaired by Amos Kukunda, MTN General Manager for Corporate Services, Denis Kakonge, said high taxes on devices are limiting access to digital platforms.
“Many Ugandans rely on mobile phones as mobile offices, using platforms like Instagram, X, WhatsApp, and Signal to earn a living. However, the cost of smartphones remains prohibitive,” Kakonge said.
He noted that a significant number of phones on the Ugandan market are smuggled into the country without paying taxes, which not only affects government revenue but also limits access to quality devices.
“Enforcement operations have uncovered thousands of smuggled phones in single raids, highlighting the scale of the problem,” he added.
MTN argues that reducing taxes on smartphones would lower prices, discourage smuggling, and expand access to digital services—ultimately boosting economic activity and increasing long-term tax revenues.
The company also referenced Uganda’s National Development Plans III and IV, which prioritize digital transformation, noting that these goals may not be achieved if a large portion of the population remains digitally excluded.
Meanwhile, lawmakers raised concerns about network coverage in some parts of the country. Geoffrey Ekanya questioned why several areas still lack reliable connectivity.
In response, Kakonge said MTN has invested heavily in network infrastructure but continues to face challenges in hard-to-reach areas. He expressed optimism that emerging technologies will help improve coverage in the near future.
