Image representing the locking off of access to parts of the internet for some people as a result of digital taxes. Image by Buffik from Pixabay. Used under a Pixabay license. This piece was written as part of Advox's partnership with the Small Media Foundation to bring you the UPROAR initiative, a collection of essays highlighting challenges in digital rights in countries undergoing the UN's Universal Periodic Review process. In July 2023, the Ugandan parliament passed a digital services tax. The Income Tax Amendment Act 2023 imposes a 5 percent levy on the income earned in Uganda on digital services provided by non-resident companies such as Meta and Netflix. In March 2023, Uganda’s finance ministry presented the Income Tax Amendment Act 2023 in parliament. The tax introduced a 5 percent tax on the income earned in Uganda by non-resident digital services companies such as Netflix, Amazon, Meta, Google, Apple and Microsoft, among others. Within the scope of the law, the affected digital services include: online advertising services, data services, and services facilitated through online marketplaces or intermediation platforms, such as accommodation, vehicle hire, and other transport-oriented platforms. In addition, digital content services are also included, and this implicates access to and downloading digital content, online gaming services, cloud computing services, and data warehousing. Initially, the parliament rejected this tax, arguing that Uganda did not have the technical skillset to collect the taxes. There was also a concern that the impact of the tax would be borne by Ugandan end users of digital services. However, in June 2023, when the Tax Amendment Bill that excluded the digital tax was passed and sent to President Museveni for assent, he advised that it be reconsidered. He argued that the tax would be incurred entirely by the non-resident companies and its burden would not shift to end users of digital services in Uganda. The concern about Ugandan end users paying the tax stems from the nature of previous digital taxes imposed in the country that had consequences for the digital economy and digital rights. Previously, in 2019, the government had introduced the social media tax on daily access to over-the-top services in Uganda, including social media. This tax, which was imposed within the context of the 2021 general election in the country, was aimed to curb dissent online, some activists argued. The social media tax caused a drop in internet subscriptions by about 2.5 million. In 2021, the government scrapped the social media tax and introduced a 12 percent excise levy on internet data, adding to the existing 18 percent value added tax on the same purchase. CIPESA, a non-governmental organization, submitted comments to the Parliament of Uganda, proposing that the digital services tax be dropped and wide consultations on the tax as well as its impact be conducted. CIPESA recommended that the government enact progressive policies aimed at improving the accessibility and utilization of digital tools and services, including initiatives like tax incentives that typically result in reduced costs for consumers. It particularly expressed concerns that the tax would hinder the inclusive use of digital technologies by groups such as people with disabilities and rural communities. Part of the statement read, ‘’The enjoyment of digital rights and freedoms, including freedom of expression, access to information, and association, could also be limited by the imposition of high digital taxes.’’ Opposition members of Parliament expressed fears that the digital services tax could restrict access to social media and suppress freedom of speech, especially given the government’s unfriendly perception of digital activism. These fears were allayed by reassurances that the tax would be incurred by the non-resident digital services companies and not their users. If the trend of digital services taxes continues, then corporations may begin to pass the taxes on to their users in Africa. Digital services such as Apple are already passing on taxes to their users through increased prices of their products in Turkey, Chile, Saudi Arabia, and Mexico. Increases in prices of digital services would, no doubt, affect freedom of expression online, considering that seeking and receiving information are integral aspects of this right. Uganda’s government already has a somewhat complicated relationship with digital services companies. About two years ago, Meta deleted the Facebook accounts of officials from the ruling National Resistance Movement, claiming that they were used to manipulate the 2021 election in Uganda.