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Gov’t Proposes Tax on Leaf Tobacco, Gold and Fish Maw

Minister Matia Kasaija proposes a levy to be charged on processed gold at the rate of United States Dollars 200 (730,000 Shillings) per kilogram which is exported out of Uganda. Government proposes that this shall be paid by the exporter to the Uganda Revenue Authority- URA at the time the processed gold is exported out of Uganda.
Finance Minister Matia Kasaija walking down the Parliament steps with the budget briefcase.
The government has in the new tax Bills tabled before parliament proposed among others a levy on exports of leaf tobacco, processed gold, unprocessed minerals and fish maw.

The levies are carried in the Tobacco Control (Amendment) Bill, 2021, the Mining Amendment Bill, 2021 and the Fish (Amendment) Bill, 2021 tabled by Finance Minister Matia Kasaija.

The Tobacco Control (Amendment) Bill, 2021 seeks to amend the Tobacco Control Act, 2015 to impose an export levy on leaf tobacco.

“There shall be paid a levy on leaf tobacco at the rate of United States Dollars 0.8 approximately 2,950 Shillings per kilogramme of leaf tobacco which is exported out of Uganda.

The levy shall be paid by the exporter to the Uganda Revenue Authority at the time the leaf tobacco is exported out of Uganda,” reads the Bill. 

It further states that leaf tobacco shall not include cut rag, threshed stem, threshed strips, threshed loose leaves or threshed lamina.

Under the Mining (Amendment) Bill, 2021, the government proposes to amend the Mining Act, 2003 to impose an export levy on processed gold and unprocessed minerals.

Kasaija proposes a levy to be charged on processed gold at the rate of United States Dollars 200 (730,000 Shillings) per kilogram which is exported out of Uganda. 

Government proposes that this shall be paid by the exporter to the Uganda Revenue Authority- URA at the time the processed gold is exported out of Uganda.

Regarding unprocessed minerals, the government proposes a levy at the rate of 1 percent of the value of the unprocessed minerals which is exported out of Uganda.

Also proposed is the amendment of the Fish Act, Cap. 197 to impose an export levy on fish maw. A levy at the rate of 70,000 Shillings per kilogramme of fish maw exports is proposed. 

Meanwhile, under the Excise Duty (Amendment) Bill, 2021, the government proposes an excise duty of Shillings 230 per litre on opaque beer and any other alcohol beverage locally produced. An excise duty of 250 per litre is also proposed for any other non-alcoholic beverage locally produced other than the beverage made out of fermented sugary tea solution with a combination of yeast and bacteria.

It also proposed US Dollars 150 (550,000 Shillings) per tonne on plastic packaging and US Dollard 100 (370,000 Shillings) per ton on plastic granules.

Speaker Rebecca Kadaga referred the Bills to Parliament’s Finance Committee for scrutiny and report back to parliament.

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