Overview:
This comes a day after the Parliamentary Committee on Finance, Planning and Economic Development dropped a proposal to tax collective investments schemes such as unit trusts.
Parliament of Uganda has approved the Excise Duty Amendment Bill, 2023, which has introduced a Shs75 tax on every litre of bottled water.
The House chaired by Speaker Anita Among on Thursday also approved taxes against adult and children diapers in the Value Added Tax Amendment Bill 2023.
However, lawmakers rejected a committee report that sought to impose a 0.5 percent tax on every bank transaction such as withdrawal of cash.
This proposal, Speaker Among said, had not been subjected to discussion from the requisite stakeholders such as those in the banking sector.
This comes a day after the Parliamentary Committee on Finance, Planning and Economic Development dropped a proposal to tax collective investments schemes such as unit trusts.
The proposal, which was contained in the Income Tax (Amendment) Bill, 2023, had proposed a 5 percent and 15 percent tax on profits, interest or dividends earned by members from their contributions to collective investment schemes, which would take effect on July 2023.
The Bill had proposed that the 5 percent tax would apply to members with a total contribution of less than Shs100m while 15 percent would apply to members with more than Shs100m in contributions.
However, in its report the Committee on Finance, Planning and Economic Development, indicated that the proposed tax had been withdrawn from the Income Tax (Amendment) Bill, noting that income generated from such schemes would remain exempted.
“To maintain income for collective investment schemes as exempted from tax in order to encourage saving and investment culture,” the report reads in part.