News
Uganda joins movement to tax Big Tech in Africa
An Uber taxi driver sits in his car in Nairobi, Kenya.
REUTERS/Noor Khamis
Uganda’s parliament just passed a tax on foreign digital service providers, joining the growing number of African governments trying to recoup some of the massive revenues tech giants are generating within their borders.
The 5% levy would apply to companies like Meta, Amazon, Uber, Google, and other tech firms that pay minimum taxes to African nations because they don’t have headquarters on the continent. Uganda’s finance minister highlighted Uber — domestic drivers generate profits that go to Silicon Valley rather than the Great Rift Valley — as the main reason the tax was necessary.
The same argument could apply to the billions of dollars generated from the data of Africa’s 570 million-and-counting internet users. Nigeria, Kenya, and Tanzania have implemented similar levies on digital services.
But the Ugandan opposition fears that companies could push the costs of taxes onto locals that rely on digital platforms, from Uber drivers to content creators. Kenya, which implemented a 1.5% levy on digital services last year, is facing protests after proposing an additional 15% tax on content creators.
In 2021, the OECD began leading negotiations on a global digital tax, which has so far been stymied by the US, which is home to many of the companies that would be directly affected. The OECD argues that a digital tax is needed to revamp brick-and-mortar tax rules for the modern global economy, making companies pay taxes where they have customers or users, rather than just where they are headquartered.From civil conflicts to trade wars to the rise of new technologies, GZERO runs through the stories that have shaped this year in geopolitics.
On Ian Explains, Ian Bremmer takes a look at the growing surge in global conflict and the ripple effects of so much violence, war, and armed struggle throughout the world.
A year into US President Donald Trump’s second term, America’s immigration policy has undergone one of its most sweeping resets in decades.
The Australian government announced a plan to purchase and destroy civilian-owned firearms after a terrorist attack left 15 people dead at a Jewish holiday gathering on Sydney’s Bondi Beach.