Overview:
The Science Lab is mandated to undertake analysis and identification of the physical and chemical composition of items to qualify them as prohibited or restricted at the border and even those on the market based on National standards.
The Uganda Revenue Authority intends to mobilize revenue for national development transparently, and efficiently for the good of every Ugandan in order to the transform the nation.
A nation can only be transformed if it exists, and is protected from the adverse effects of climate change like floods, famine, and droughts.
That is why in a time when climate change is at the top of the world agenda, tax bodies reflect inwardly and pose the question; “What is the role of taxation in fighting climate change?”
The Uganda Bureau of Statistics Annual Agricultural Survey (AAS) 2019 report reveals that about 80 percent of total households in Uganda derive their economic livelihood from agriculture which is continuously under threat by changing weather patterns.
As a business enabler, it’s URA’s mandate to ensure that the livelihoods of her key stakeholders (all Ugandans) are not jeopardized which renders environment conservation a key function.
Stephen Kiggundu from the Tax Investigations Department says, “It is the role of the Tax Investigations Department (TID) together with Customs and Domestic Taxes to play a gatekeeping role and protect the environment and society.”
The Science Lab is mandated to undertake analysis and identification of the physical and chemical composition of items to qualify them as prohibited or restricted at the border and even those on the market based on National standards.
Prohibited items consist of narcotics, chemical weapons prohibited by the UN Organization for the Prohibition of Chemical Weapons-OPCW, Ozone-depleting chemicals, products containing aflatoxins, and various hazardous chemicals.
Restricted goods on the other hand are not banned but regulated by other government agencies e.g. the Ministry of Agriculture, Animal Industry and Fisheries controls how much fertilizers are allowed on the market, while the National Drug Authority and the Ministry of Health authorize what drugs and cosmetics are acceptable on the market. For example, containing mercury cosmetics (2 milligrams per kilogram) hydroquinone-bleaching carcinogen (completely banned).
“Interestingly some of these hazardous items have a dual purpose. They can be used for good or as a precursor to making dangerous items like bombs. TID considers these precursors are target items like ammonium nitrate that caused the explosion in a warehouse in Beirut,” Said Samuel Katabi Charles from Science Laboratories.
Additionally, under the Science Investigations division, TID offers advisory services to lawmakers and ministries during policy formation. For example, the department played a big role in the 2020/2021 amendment of the Local Excise Duty, 2014 proposing that denatured alcohol be taxed at different rates from undenatured types.
Recently, the Ministry inquired into Anhydrous bioethanol what it is and its taxability, and the best practices during handling to ensure the upholding of safety measures both in transit and during warehousing storage to prevent instances like the 2020 Beirut explosion where a fire broke out in a warehouse ignited by 2,750 tons of Ammonium Nitrate (AN), producing a devastating blast that claimed the lives of over 220 people and injured more than 6,500.
According to Kiggundu, the Science Investigations unit works together with key conservation stakeholders like NEMA, Uganda National Bureau of Standards (UNBS), National Drug Authority (NDA), and the Directorate of Government Analytical Laboratory, among others, to ensure that there is optimal compliance to the best practices when disposing of unsafe goods.
“The Science Investigations team works together with NEMA in making recommendations on the eco-friendliest mode of disposal for toxic waste.” Said Kiggundu.
In order to beef up the work of the Science Labs in combating harmful products in the country, URA is implementing strict legislation policies like the imposition of Environmental levies on every importer of passenger motor vehicles older than 9 years and less than 15 years the rate of 50% customs value. And on goods carrying vehicles i.e. trucks older than 9 years i.e. trucks older than 9 years it is 20% of customs value.
Mary Baine, the Deputy Executive Director ATAF urged the member countries present to embrace scientific models to minimize risks of non-compliance.
Levies are also imposed on the importation of used household appliances for example electrical appliances levies range from UGX 20,000 to UGX 50,000 per item, depending on the nature of the item. There is also an Infrastructure Levy charged at 1.5%.
Other tax heads like Local Excise Duty (LED) are typically designed to discourage the purchase of particular goods that are harming the environment for example polythene bags, fuel, old motor vehicle levies, and international air