No new taxes in next financial year – Kasaija
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Loading... - Simon Akello
- 15 Jun 2022
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No new taxes will be introduced in Financial Year 2022/23, finance minister Matia Kasaija has reechoed, arguing that government will achieve revenue targets by improving the efficiency in tax collection and enhancing compliance to tax laws.
According to him, the capacity of the Uganda Revenue Authority (URA) will be enhanced by recruiting and training staff, deploying appropriate equipment and ICT to enforce tax laws.
“I wish to report that Parliament has made amendments to the various tax laws intended to simplify the laws, clarify previously ambiguous provisions and close loopholes that may lead to revenue leakage. The amendments that have been made are in the Income Tax Act, Value Added Tax, the Stamp Duty Act and the Tax Procedures Act,” Mr Kasaija told MPs on Tuesday during national budget reading at Kololo ceremonial grounds in Kampala.
According to him, the corporate income tax exemption for Bujagali Hydro Power Project has been extended for one year up to June 30, 2023 in order not to increase electricity tariffs for power that the project generates.
“The income tax Act has been amended to streamline the rental income tax regime for individuals and non-individuals by introducing a zero rental income tax rate for individuals that earn annual rental income not exceeding Shs 2,820,000 and a rate of 12 percent of rental income exceeding that amount,” Mr Kasaija said.
For rental business, the minister said Income Tax Act has been amended to introduce a 30 percent rental income tax rate on rental income with expenses capped to 50 percent for each year of income.
“In addition, any excess expenses shall not be carried forward to a subsequent year of income,”he added.
Value Added Tax
Under the Value Added Tax Act, the following amendments have been made:-
i) Exempted the supply of oxygen cylinders or oxygen for medical use to reduce the cost of the supply of oxygen for medical use;
ii) Exempted the supply of assistive devices for persons with disabilities to reduce the cost of the equipment used by persons with disabilities;
iii) Exempted the supply of airport user services charged by the Civil Aviation Authority to reduce the cost of transiting through Entebbe Airport;
