01/09/2026
Tax Alert: The Tax Appeals Tribunal, by majority decision, has ruled in favour of Airtel Uganda Limited, setting aside additional tax assessments amounting to UGX 17.653 billion in alleged unpaid Over-the-Top (OTT) Excise Duty.
The dispute arose from an assessment by Uganda Revenue Authority on the basis that Airtel’s customers had accessed OTT services without payment of OTT tax.
Airtel challenged the assessments on the grounds that URA’s methodology failed to distinguish between customers who had actually accessed OTT services and those who had not, thereby failing to reliably establish actual taxable access. Airtel further contended that URA didnot reconcile the alleged accesses with its records of OTT tax payments. Additionally, Airtel argued that the use of 1KB data threshold was not provided for under the LED Act.
In its majority ruling, the Tax Appeals Tribunal emphasised that the 1KB data threshold used by the Respondent was not conclusive proof of access to OTT services. The Tribunal further held that Airtel duly discharged its burden of proof by providing both documentary and video evidence to prove that the tax assessment was unlawful.
This decision emphasises that data traffic alone cannot establish “taxable access” without reconciliation with actual customers who had accessed OTT services and payments received by Airtel; and that URA cannot rely on administrative assumptions where the law is clear.
Congratulations to our team for successfully representing Airtel Uganda Limited in this matter.
