In his letter, the President appealed to parliament to approve the tax proposals to together with others, saying failure to do so would exacerbate the already precarious situation arising from the poor revenue outlook.
Also rejected by Parliament is a proposal to increase excise duty on wines which the President expected to generate 130 million as well as a proposal to introduce excise duty on other fermented beverages including cider, perry, mead, spears and near beer. This was expected to generate 12 billion Shillings.
According to Bahati, the proposals in the Bills are to offer tax relief to Ugandans in different economic activities. Under the proposed Income Tax Amendment Bill, the government seeks to provide for the deduction of charitable donations made by persons to the government, to fight against the COVID-I9 pandemic.
Akol was summoned by Parliaments Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) summoned Akol to explain the process of collecting taxes on goods vis-a-vis the process of verification of standards. This followed Akol a petition by 3,000 traders claiming losses following the destruction of their goods for poor standards even after paying taxes.
Members of the NRM Parliamentary Caucus have resolved to back a cabinet decision to revise the 1 percent tax on mobile money withdrawals. They however chose to retain taxes on Over the Top services like Facebook, Twitter and WhatsApp.
Minister Matia Kasaija says government plans to invest in tax administration measures so as to improve the capacity of Uganda Revenue Authority to implement the current tax laws, and enforce taxpayer compliance.
The Shadow Cabinet on Friday tabled the alternative budget for the financial year 2014/2015 appealing to Parliament to oppose the proposed taxes and revenue measures in the government budget.Early June, the Finance Minister Maria Kiwanuka unveiled a 14 trillion shillings budget for 2014/15 with a theme â€œMaintaining the Momentum: Infrastructure Investment for Growth and Social Economic Transformationâ€. The approved budget in the 2013/14 financial year was 13.1 trillion shillings.
Half a litre of Jesa Milk has increased from Shillings 1000 to Shillings 1300 whereas a litre Classic milk has increased from 2000 to 2300 Uganda Shillings. Cooking gas prices have also gone up by 18 percent, after the VAT exemption was also lifted. A Shell Gas quotation now indicates that the 6kg gas cylinder that was previously at 48,000 is now at 59,000 Uganda shillings. The price of the 15kg gas cylinder has also increased from 120,000 to 142,000 Uganda Shillings.
The caucus meeting held at parliament and chaired by party chairman President Yoweri Museveni resolved that the new tax that was levied on tourism and the increased tax on water be maintained despite immense public outcry to ensure sustainable development.
Dozens of goods consumed in the area are from Tanzania. They include soft drinks like Coca-Cola sodas, soap, rice, sugar and salt. While a plastic Ugandan manufactured Coca-Cola soda is sold at 2000 shillings in Masaka, a Tanzanian made Coca-Cola soda is sold at 1500 shillings in these areas.