President Yoweri Museveni’s government, through the Ministry of Finance, Planning and Economic Development, has proposed to impose a number of taxes, including on cement, fuel and land transactions in the next financial year which begins on July 01.
The taxes and exemptions have been detailed in the Income Tax Amendment Bill 2024 and the Excise Duty Amendment Bill 2024.
Museveni’s government has proposed a five per cent (5%) withholding tax on proceeds from the sale of land in cities and municipalities. A similar withholding tax has also been proposed on the sale of rental property and sale of shares in a private company.
Government has proposed that those undertaking such transactions should remit the withholding tax to the Uganda Revenue Authority (URA) within only 15 days after the land has been disposed of or the transactions made. Late payments will attract fines from the tax collectors.
Government has also proposed taxes on fuel products like motor spirit or gasoline, gas oil for automotive, light, amber for high speed engines, as well as on Illuminating kerosene.
A Shs1,550 levy has been proposed on each litre of gasoline, while purchases on each litre of gas oil will see a Shs1,230 levy. Those buying illuminating kerosene will pay a Shs500 levy per litre.
Government also wants to impose a Shs500 excise duty tax for each 50kg-bag of Cement, adhesives, grout, white cement or lime.
Also being proposed is a 10 per cent or Shs75 per litre of mineral water or bottled water.
On exemptions, government has proposed an exemption on electric cars manufactured in Uganda, electric vehicles’ charging equipment assembled in Uganda.
Government is also proposing a Value Added Tax (VAT) exemption on handhoes, pesticides, fertilizers, seedlings and cooking stoves that use ethanol until June 30, 2028.
The proposed taxes come at a time Museveni government is being accused of doing little to fight corruption. For example, Parliament has been accused of wasteful expenditure of taxpayers’ money. But Speaker Anita Among has swept allegations of corruption at parliament under the carpet, accusing homosexuals for persecuting her – and blaming a former speaker for sponsoring those exposing corruption in Parliament. (Read Stories Here and There).
Speaker Anita Among’s Parliament has also ‘cursed’ PSST Ramathan Ggoobi for proposing that the House’s budget be cut by 50% and for punching holes in Parliament’s powers over the budget. (See Details Here).
