In the new proposed tax measures presented by state minister of Finance, David Bahati, government is expecting to generate at least Shs 770 billion in financial year 2018/19.
1. Introduce an alternative minimum tax of 0.5% of annual gross income for companies that post losses for 7 consecutive years. This is expected to raise Shs 7 billion.
2. Introduce 10% final withholding tax on commissions by telecommunication companies to mobile money and airtime agents - this will raise 11.3 billion.
3. Reinstate corporation tax on Saccos - this will generate Shs 10 billion.
4. Strengthen the effectiveness of the current limitation of excessive interest deduction - to generate Shs 14,5 billion.
5. Impose tax on direct or indirect sale of an asset connected to Uganda by a non-resident - this is expected to generate Shs 5 billion.
6. Apply withholding on all winnings in sports betting and gaming - this will generate Shs 15 billion
7. Enforcement of 1% withholding tax on persons engaged in agriculture - to generate Shs 15 billion.
8. Align tax treatment of returnable containers used by manufacturers - to generate Shs 5 billion.
1. Introduce equivalent tax rates for ad valorem rates on spirits and wines - to generate Shs 5 billion
2. Introduce excise duty on opaque beer (kibuku) - to generate Shs 2.3 billion
3. Impose 15% excise duty on all juices including powders - to generate Shs 1 billon.
4. Impose Shs 200/litre excise duty on cooking oil - to generate Shs 3 billion.
5. Harmonise excise duty of 12% on all telecomm services - to generate Shs 30 billion.
6. Increase excise duty on diesel and petrol by Shs 100/litre - to generate Shs 196.4 billion.
7. Increase excise duty on mobile money and bank charges from 10% to 15% - to generate Shs 45 billion.
8. Impose Shs 200,000 excise duty on motorcycles at first registration - to generate Shs 8 billion.
9. Levy 1% levy on mobile money - to generate Shs 115 billion.
10. Impose Shs 200 daily levy on over the top (OTT) i.e social media - to generate Shs 284 billion.
1. Foreign based remote service providers to account for VAT in Uganda - to generate Shs 5 billion.
2. Exclude goods for private use from the scope of the payment provisions - to generate Shs 10 billion.
3. Oblige MDAs (ministries, departments and agencies) to withhold VAT on their purchases - to generate Shs 40 billion.
4. Carry forward VAT offsets - to generate Shs 30 billion.
Non-Tax Revenues (NTR)
1. Increase motor vehicle first registration from Shs 1.2 million to Shs 1.3 million - to generate Shs 4 billion.
2. Environmental levy to include goods vehicles over 5 tonnes - to generate Shs 20 billion.
3. Ban of motor vehicle imports - to generate Shs 182 billion loss.
1. Common External Tarrif (CET) adjustments - to generate Shs 50 billion.
2. Impose export levy of $0.4 (about Shs 1,500) per kilogram of wheat, maize, rice. cotton - to generate Shs 20 billion.