FSMEs chief urges government to remove smartphone taxes

3 December 2025, 10:42 pm

By Ronald Ssemagonja

The Executive Director of the Federation of Small and Medium Enterprises Uganda (FSMEs), John Walugembe, has urged the government to scrap taxes imposed on electronic gadgets, especially smartphones, to make them more affordable for low-income earners. He made the remarks during a dialogue organised by the Uganda Communications Commission (UCC) and its partners in Kampala.

Walugembe noted that small and medium enterprises stand to benefit greatly from digital transformation, including improved operational transparency, enhanced efficiency in logistics and payments, and better access to markets. However, he said the digital agenda has not been fully embraced by SMEs due to several barriers.

“One is digital illiteracy and a lack of awareness about digital transformation in their businesses. Two is infrastructural challenges; in some parts of the country, the network is poor, which makes it difficult for people to benefit from it,” he explained.

He added that the government should remove taxes on smartphones to enable Ugandans to purchase them at more affordable prices, noting that most smartphones cost between Uganda Shillings 200,000 and 300,000, which is beyond the reach of many citizens.

Walugembe also called for the reopening of Facebook, which has been blocked for about five years. He welcomed reports that the President is considering reopening it after the elections, but emphasised that only those who misuse the platform should be punished, not the entire population that relies on it for business.

Meanwhile, UCC’s James Beronda stressed the importance of digital transformation for small and medium enterprises. He said smartphones, internet access, and digital tools can significantly support business growth, which is why UCC is conducting dialogues to help SMEs understand how to benefit from the digital economy.