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Gov't to raise Shs 770bn from new taxes

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. 

INCOME TAX

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.

EXCISE DUTY

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.

VAT

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.

CUSTOMS

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.

Comments

+2 #1 WADADA rogers 2018-04-25 08:45
Oh dear, the picture of the "cow" leaves a bad taste in my mouth, the milking would make sense if the "milk" was properly stored and utilized, unfortunately, they use most of the mil to feed their dogs, use some of it for bathing, mixing cement to build their houses and to wash their cars.

Matters are made worse that the cow is underfeed, just look at the amount of water the poor cow is being given and at gun point yet the milk man continues milking and certainly drinking some of the mild that is mandated to collect.
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+2 #2 kase 2018-04-25 09:07
About the Non-Tax Revenues (NTR)
3. Ban of motor vehicle imports - to generate Shs 182 billion loss.

I do not think that government will get this loss if it lowers the taxes of newer cars.

Everyone knows that if you close one door you need to open up another door to maintain equilibrium.

Everyone can be a winner in this case i.e The environment, the government (revenues remaining constant) and people who buy cars.

If URA doesn't want to make a loss it needs to also drastically lower the taxes of newer cars as that will ensure that the total numbers of imported cars (newer cars in this case) remains constant ..actually it may even increase as people will get rid of their old cars knowing that they can buy a newer car at the old price.

You can not enforce this ban of old cars and still maintain the old huge tax regime of imported new cars as you will definitely kill the car market. For Christ's sake use common sense !!!!
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