The consequences of Uganda's mobile money tax

Policy brief 4 Jun 2025 Sustainable Growth, State Effectiveness and Tax

This study examines the behavioural and institutional impacts of Uganda’s mobile money tax, leveraging the introduction of the tax as a natural experiment in digital finance regulation. It finds that the tax triggered significant shifts in financial behaviour and liquidity flows, with uneven effects across regions due to disparities in access to traditional financial infrastructure, revealing actionable recommendations for governments, central banks, and digital finance regulators.