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List: Government Proposes 27 New Taxes

Government Hopes to Raise Shs 800 Billion in New Taxes

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Uganda’s government has proposed 27 new taxes, from which it hopes to get about 800bn, starting in July 2018.

On Tuesday, junior finance minister in charge of planning, David Bahati, revealed to parliament’s finance committee of government’s  proposed amendments to the Income tax Bills.

Minister Bahati speaking at Parliament
Minister Bahati speaking at Parliament

27 TAXES TO BE INTRODUCED BY GOVERNMENT OF UGANDA IN 2018/19 FINANCIAL YEAR

1. An alternative minimum tax of 0.5% of annual gross income for companies that post losses for seven consecutive years with a view of raising Shs 7bn.

2. A 10% final withholding tax on commissions by telecommunication companies to mobile money and airtime agents with a view of raising Shs 11.3bn.

3. Corporation tax on Saccos with a view of raising Shs 10bn.

4. Strengthening measures of avoiding excessive interest deduction with a view of raising Shs 14.5bn.

5. Tax on direct or indirect sale of an asset connected to Uganda by a non-resident with a view of raising Shs 5bn.

6. Withholding tax on all winnings in sports betting and gaming with a view of raising Shs 15bn

7. A 1% withholding tax on persons engaged in agriculture with a view of raising Shs 15bn.

8. Tax treatment of returnable containers used by manufacturers with a view of raising Shs 5bn.

9. Equivalent tax rates for ad valorem rates on spirits and wines with a view of raising Shs 5bn

10. Excise duty on opaque beer with a view of raising Shs 2.3bn

11. A 15% excise duty on all juices including powders with a view of raising Shs 1bn.

12. A Shs 200 excise duty on cooking oil per litre with a view of raising Shs 3bn.

13. A 12% excise duty on all telecom services with a view of raising Shs 30 bn.

14. Excise duty on diesel and petrol | Shs 100 per litre with a view of raising Shs 196bn.

16. A 10-15% excise duty on mobile money and bank charges with a view of raising Shs 45bn.

17. A Shs 200,000 excise duty on motorcycles at first registration with a view of raising Shs 8bn.

18. A 1% levy on mobile money with a view of raising Shs 115bn.

19. A Shs 200 daily levy on over the top (OTT) such as social media with a view of raising Shs 284bn.

20. Foreign based remote service providers to account for VAT in Uganda with a view of raising Shs 5bn

21. Excluding goods for private use from the scope of the payment provisions with a view of raising Shs 10 bn.

22. Oblige MDAs (ministries, departments and agencies) to withhold VAT on their purchases with a view of raising Shs 40bn.

23. Carry forward VAT offsets with a view of raising Shs 30 billion.

24. Hike motor vehicle first registration fees from Shs 1.2m to Shs 1.3m with a view of raising Shs 4bn.

25. Environmental levy to include goods vehicles over five tonnes with a view of raising Shs 20bn.

26. Common External Tarrif (CET) adjustments with a view of raising Shs 50bn.

27. A $0.4 (about Shs 1,500) per kilogram of wheat, maize, rice, export levy with a view of raising Shs 20bn.

Dear Museveni, When Will You Start Taxing the Air Ugandans Breathe?

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