Some of the proposed measures include; excise duty of 1,115 Shillings per liter on beer produced from barley grown and malted in Uganda, excise duty of 1,700 Shillings per liter on ready to drink spirits, 2,050 Shillings per liter on malt beer, excise duty of 1,350 Shillings per liter on gasoline, 300 Shillings per liter on kerosene, and 1,030 Shillings per liter on gas oil and others.
The Ministry of Finance has been
tasked to consider suspending all new tax measures for the coming financial
year 2020/2021 to help Ugandans cope with the effects of Coronavirus pandemic.
The request was made by the
Finance Committee of Parliament during an interface with Minister Matia Kasaija.
The minister appeared before the committee to present and defend the new tax
measures for the financial year 2021-2022 highlighted in the adjustments made in
the Excise Duty, Value Added Tax, Income Tax, Stamp Duty and Non-Tax Revenue
Some of the proposed measures include; excise duty of 1,115 Shillings per litre on beer produced from barley grown and malted in Uganda, excise duty of 1,700 Shillings per litre
on ready to drink spirits, 2,050 Shillings per litre on malt beer, excise duty
of 1,350 Shillings per litre on gasoline, 300 Shillings per litre on kerosene, and
1,030 Shillings per liter on gas oil and others.
The other proposed measures are excise
duty of 2,300 Shillings per litre on wine made from locally produced raw
materials, excise duty of 1,500 Shillings per litre on undenatured spirits made
from locally produced raw materials, excise duty of 250 Shillings per litre on
non-alcoholic beverages (Soda) not including fruit or vegetable juice and
excise duty of 100,000 Shillings on licenses for provision of professional
The government envisages earning 677
billion Shillings from the tax policy measures. Uganda Revenue Tax
administrative measures will collect 579 billion Shillings, to finance part of
the proposed 44.07 Shillings trillion budget.
However, the committee led by MP
Henry Musasizi objected to the proposals saying that the government intentions
were good but had come at an abnormal time where the majority of Ugandans are not
certain of their future in the face of the Coronavirus pandemic. He also noted that the country can work with
the current tax laws in the recovery process.
//Cue in; “Uganda Breweries is…
Cue out…economy has recovered.”//
Ntenjeru North MP Amos Lugoloobi
said that Uganda’s economy has already been hit badly by the pandemic and that
it would be wrong for the government to continue taxing it. Lugoloobi advised
that the government should instead look at ways to resuscitate the economy from shock.
Lugoloobi, who doubles as the
Chairperson of Parliament’s Budget Committee notes that the country’s budget
can always be adjusted.
//Cue in; “you know that…
Cue out…we have assessed.”//
Ngora County MP David Abala noted
that the entire world has already been overrun over by the Coronavirus pandemic
and that in addition, Uganda is experiencing other problems like the invasion
of locusts and storms, among others. He adds that instead of suggesting tax
measures, the Ministry should think of ways to cushion the economy.
Agago Woman MP Judith Akello
Franca also expressed discomfort with the new tax measures saying that they were
insensitive to the needs of Ugandans.
“Comparing fuel pump prices in
the region at the moment and Uganda's pump price is high yet you want to add
more. These will stifle the economy; I would like the minister to withdraw
these measures in the spirit of supporting the economy,” she appealed.
Kabula County MP James Kakooza also argued that this was not the time to
//Cue in; “the situation you…
Cue out…be in ICU.”//
But Finance Minister Matia
Kasaija appealed for more time to allow his technical staff retreat and look
through the proposed taxes once again.
//Cue in; “Mr Chairman to…
Cue out…time Mr Chairman.”//
Earlier before interfacing with
the committee, Kasaija acknowledged that the proposed tax measures were
developed for a country operating in a normal situation.