Overview:
In the new taxes, the government targets to collect Shs1.2 trillion. URA’s total revenue collection target for the new financial year is close to Shs32 trillion.
The Uganda Revenue Authority (URA) has today, July 1, 2024, begun collecting the new taxes introduced by the government in the new financial year 2024/25.
In the new taxes, the government targets to collect Shs1.2 trillion. URA’s total revenue collection target for the new financial year is close to Shs32 trillion.
The taxes are contained in five sets of tax Bills tabled before Parliament in April. They are: Excise Duty Amendment Bill 2024, Stamp Duty Amendment Bill 2024, Income Tax Bill 2024, Value Added Tax Bill 2024 and Tax Procedures Amendments Bill 2024.
Parliament in May passed into law the Excise Duty Amendment Bill, 2024, increasing the levy on fuel to Shs1,550 per litre, imposing Shs500 per 50 kg of lime, adhesive and grout, and also imposed a fixed rate of Shs50 per litre of mineral water. And although MPs adopted the proposal to impose a 0.5% levy on cash withdraws on payment systems, they voted to have agency banking excluded from this category.
MPs, however, rejected the proposal by Government to impose a Shs300 levy on every litre of kerosene, citing the failure by Government to extend electricity across the country, thus condemning the poor people to only use kerosene for lighting and any charge on kerosene would impact on their incomes.
Some progressive taxes have been introduced such as exemptions on electric batteries and electric vehicle charging equipment.
The other is the increase of excise duty on imported wines from 80 percent or Shs8,000 per litre to 100 percent or Shs10,000.
URA Commissioner General John Musinguzi Rujoki on Monday said: “As we begin the Financial Year 2024-25, I thank all our taxpayers for your diligent contributions to our nation’s progress. URA remains committed to providing excellent support for your compliance needs. Let’s continue Developing Uganda Together. Best wishes this Financial Year.”