A joint team representing the Uganda National Musicians Forum and the National Culture Forum has requested Parliament to step in and advocate for a more equitable distribution of tax revenue generated from caller ring back tunes (CBRTs). They claim that the Uganda Communications Commission (UCC), the regulating body, has not adequately supported them.
This request was made during their appearance before the Committee on Information, Communication, Technology, and National Guidance on Thursday, October 5, 2023.
The artistes expressed their dissatisfaction with the current situation, as telecommunication companies are earning a significant 35 percent of the revenue generated by caller ring back tones, while musicians are left with only a meager 1.8 percent. Charles Batambuze, Vice-Chairperson of the National Cultural Forum, stated, “Currently, telecoms earn a gross revenue of up to UGX 72 billion annually, that’s 35 percent, leaving the musician with a paltry 1.8 percent, yet the musician is obligated to pay income tax of 30 percent on this income.”
Furthermore, they are calling upon Parliament to compel media houses to pay for using their music. They highlighted that only five percent of broadcasters are currently paying royalties for their work. Charles Batambuze questioned why UCC has not enforced copyright laws that require media houses to compensate artists for using their creations, despite signed memoranda of understanding.
Geoffrey Ekongot, the Executive Director of the musicians’ association, informed the committee that they have attempted to engage with UCC, Uganda Revenue Authority, and the Attorney General’s chambers, but their efforts have been in vain. He said, “We have tried to engage UCC and other government agencies, but we have not been helped.”
Ekongot added that pursuing legal action against broadcasters and telecom companies for unfair pay and non-compliance has been hindered by protracted court processes. He explained that these cases typically take an extended period, with one recent case lasting eight years, which many artists cannot afford.
Deputy Chairperson of the Committee, Hon. Tonny Ayoo, assured the artistes that the committee would engage with UCC and other relevant agencies to address their concerns. He suggested that telecom companies should provide data to track artists’ earnings, similar to platforms like YouTube and iTunes.
Hon. Kazibwe Bashir, a member of the committee, proposed the establishment of a broadcast monitoring mechanism that would allow artistes to track how frequently their music is played on various stations, ensuring transparency and fair compensation.
