The Uganda National Musicians Forum and the National Culture Forum have jointly appealed to Parliament to intervene and fight for an equitable distribution of tax money derived from caller ring-back tunes with the Uganda Communications Commission (UCC).
This appeal was made during their appearance before the Committee on Information, Communication, Technology, and National Guidance on Thursday, October 5, 2023.
According to Charles Batambuze, the Vice-Chairperson of the National Cultural Forum, there is a significant concern among artists regarding the disproportionate revenue distribution from caller ringback tones, with telecommunication firms collecting 35 percent and artists receiving only 1.8 percent.
“Currently, telecoms earn a gross revenue of up to Shs72 billion annually; that’s 35 percent, leaving the musician with a paltry 1.8 percent, yet the musician is obligated to pay an income tax of 30 percent on this income,” Batambuze,
Batambuze further urged Parliament to implement the collection of fees from media establishments for the use of musical works, emphasising that a mere five percent of broadcasters are presently remunerating the rightful owners of these works.
Geoffrey Ekongot, the Executive Director of the musician’s association, informed the committee that their efforts to address these issues with UCC, Uganda Revenue Authority, and the Attorney General’s chambers have been futile.
He highlighted the challenge of prolonged court processes, making it difficult for musicians to pursue legal actions against broadcasters and telecom companies.
Hon. Tonny Ayoo, the committee’s deputy chairperson, assured the team that the committee would engage with UCC and other relevant agencies regarding the artists’ concerns.
He emphasised the need for mechanisms that allow artists to track their due revenue, similar to international standards.
Telecommunication companies continue to earn a much higher revenue of 35 percent from the caller ring back tones, leaving the musicians with only 1.8 percent and a gross revenue of up to Shs72 billion annually, yet the musician is obligated to pay an income tax of 30 percent on this income.
