on Tuesday rejected a proposal by Kampala Central Member of Parliament,
Muhammad Nsereko to exempt bread wheat and five-year-old computers from paying
Value Added Tax.
This was during a debate in which MPs were considering the Value Added Tax
(Amendment) Bill, 2022.
argued that bread or its inputs like wheat should be exempted from the tax to
enable affordability. He argued that instead of exempting hotels and lodges
from paying VAT, the exemption should be put on wheat.
Nsereko added that people going to hotels are more capable of paying than people
//Cue in: "as to you...
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Dickson Kateshumbwa the Sheema Municipality MP said that his proposal is not possible
since it will not automatically result in a reduction in prices.
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defended his proposal saying that the proposed exemptions should include inputs.
Anita Among, the Speaker of Parliament wondered why Nsereko thought bread was
the most important item to benefit from exemption yet the majority of people in rural
areas have priorities.
"so you are...
out:...not be easy."//
proposal to also exempt computers and computer accessories five years old
was also rejected. He argued that this will enable affordability and aid learning.
that parliament should not encourage the importation of older computers because
Uganda was not a dumping ground.
parliament exempted oxygen cylinders and oxygen for medical use from VAT.
According to Henry Musasizi, the Minister of State for Finance- General Duties,
the Value Added Tax Act currently only exempts cylinders but not oxygen, and
the exemption is in a bid to make it affordable.
also exempted devices used by Persons with Disabilities-PWDs, educational
materials, sanitary towels, menstrual cups, tampons, and the inputs for the
manufacture of sanitary ware.